The employer records the amount of federal income tax withheld from employees as
A)Social Security Tax Expense.
B)Social Security Tax Payable.
C)Income Tax Expense.
D)Employee Federal Income Tax Payable.

Question

Quizplus · Accepted Answer

The amount of federal income tax withheld from employees is recorded as Employee Federal Income Tax Payable, as it represents funds withheld from employees' paychecks that are owed to the federal government on their behalf. It is not recorded as Social Security Tax Expense or Payable, as that tax is separate from federal income tax. Similarly, it is not recorded as Income Tax Expense, as that refers to the amount of income tax the company itself owes, not the amount withheld from employees' paychecks.

The Employer Records the Amount of Federal Income Tax Withheld