Which of the following payroll items is not reﬂected on the income statement?
A)Salaries and wages expense
B)Payroll taxes expense
C)Health insurance expense
D)Federal withholding tax payable

Question

Quizplus · Accepted Answer

Federal withholding tax payable is a liability account that represents taxes withheld from employees' wages and is not an expense of the company; therefore, it does not appear on the income statement. The other options (salaries and wages expense, payroll taxes expense, and health insurance expense) are expenses that reduce the company's income and are reflected on the income statement.

Which of the Following Payroll Items Is Not Reﬂected on the Income