The Anderson Company Started Its Business on August 3, 2015

question 97

Multiple Choice

The Anderson Company started its business on August 3, 2015. On August 14^th, it paid wages for the first time and accumulated a tax liability of $47,000. On August 28, it incurred an additional tax liability of $53,000. How is the Anderson Company treated as a payroll tax depositor?

• A) Monthly because its accumulated tax liability is not more than $100,000 on any one day.
• B) Monthly because new companies do not have a look back period.
• C) Semiweekly because its accumulated tax liability is $100,000 for the month.
• D)Semiweekly for this pay period only and then monthly for the remainder of the year.

---

Definitions:

Microsoft Office

A suite of productivity software developed by Microsoft, including applications such as Word, Excel, PowerPoint, and Outlook.

Server

A computer system that provides data services, resources, or programs to other computers, known as clients, over a network.

Hard Drive

A device for storing and accessing digital data that employs one or several fast-spinning disks covered in magnetic material.

Operating System

The software that manages all the software and hardware on a computer, acting as an intermediary between applications and the computer hardware.