The careful and timely preparation of all payroll tax returns is necessary to avoid penalties and criminal charges. The most important control in the timely preparation of these returns is
A) computerized preparation of tax returns.
B) a well-defined set of policies that indicate when each form must be filed.
C) independent verification of computer output by a competent individual.
D) the use of an outside payroll service.

Question

Quizplus · Accepted Answer

While all of the options can be helpful in ensuring the accurate and timely preparation of payroll tax returns, the most important control is having a well-defined set of policies that outline when each form must be filed. This ensures that everyone involved in the process understands their responsibilities and deadlines and can work towards meeting them. Additionally, policies can help prevent errors and make it easier to identify and correct mistakes if they do occur. Computerization, independent verification, and outside services can all be useful in their own right, but they are not as important as having clear policies in place.

The Careful and Timely Preparation of All Payroll Tax Returns