Employers computing taxable income under the accrual method to unrelated taxpayers may deduct wages accrued as compensation expense in one year and paid in the subsequent year, as long as the company makes the payment within 2½ months after the employer's year-end.

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This statement is true, as per the IRS rules regarding the accrual method of computing taxable income for employers. They can deduct wages accrued in one year and paid in the subsequent year, as long as the payment is made within 2.5 months after the year-end.

Employers Computing Taxable Income Under the Accrual Method to Unrelated