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The Anderson Company Started Its Business on August 3rd

Question 60

Multiple Choice

The Anderson Company started its business on August 3rd.On August 14th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?


A) Monthly because its accumulated tax liability is not more than $100,000 on any one day.
B) Monthly because new companies do not have a look back period.
C) Semiweekly because its accumulated tax liability is $100,000 for the month.
D) Semiweekly for this pay period only and then monthly for the remainder of the year.

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