The employer records deductions from the employee's paycheck:
A)as debits to expense accounts.
B)as credits to liability accounts until paid.
C)as debits to asset accounts until paid.
D)as credits to capital accounts.

Question

Quizplus · Accepted Answer

Deductions from an employee's paycheck represent amounts that the employer owes to third parties, such as taxes or insurance premiums. Until the employer pays these amounts, they should be recorded as a liability. Therefore, the deductions should be credited to liability accounts until they are paid.

The Employer Records Deductions from the Employee's Paycheck