The employer records deductions from the employee's paycheque

Name: The employer records deductions from the employee's paycheque
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deductions from an employee's paycheque are recorded as credits to liability accounts until they are paid. This is because the employer holds the deducted amounts as a liability until they are remitted to the appropriate government or vendor. Once the deductions are paid, the liability account is debited to reduce the amount owed by the employer.

The Employer Records Deductions from the Employee's Paycheque