Payroll deductions are a(n)______ to the employer at the time they are withheld.
A)expense
B)loss
C)liability
D)revenue

Question

Quizplus · Accepted Answer

Payroll deductions are amounts that employers withhold from an employee's paycheck and hold in trust until payment is due to a third party (e.g., taxes, health insurance). These deductions are not an expense or loss to the employer but represent a liability owed to the employee and the third party. Therefore, C is the correct answer. Revenue is not applicable because payroll deductions are not income to the employer.

Payroll Deductions Are A(n)______ to the Employer at the Time