Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 45

Lauer Company started its business on June 30, 2010. On July 9, it paid wages for the first time and accumulated a tax liability of $48,000. On Friday, July 23, it incurred a tax liability of $52,000. How is Lauer Company treated as a depositor? a. Monthly because new companies do not have a lookback period.
B) Semiweekly because its accumulated tax liability is $100,000.
C) Monthly because its accumulated tax liability is not more than $100,000 on any one day.
D) Semiweekly for this pay period only and then monthly for the remainder of the year.