The Anderson Company started its business on August 2,2014.On August 15^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 29,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

Question

Quizplus · Accepted Answer

According to IRS rules, new employers are considered semiweekly payroll tax depositors for the first year of operation. The company's accumulated tax liability is $100,000 or more during the lookback period from July 1 to June 30 of the previous year. As the Anderson Company's accumulated tax liability is $100,000 for the month of August, it falls under the semiweekly payroll tax deposit schedule.

The Anderson Company Started Its Business on August 2,2014