When calculating the employer's payroll tax expense the clerk forgot about the wage base limits,this will cause:
A)the expenses to be overstated.
B)the assets to be overstated.
C)the liabilities to be overstated.
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Forgetting about the wage base limits would lead to overestimating the amount of payroll taxes owed, thus overstating both the expenses related to payroll taxes and the liabilities for those taxes.

When Calculating the Employer's Payroll Tax Expense the Clerk Forgot