Which of the Following Statements Regarding the Tax Consequences of Wages

Which of the following statements regarding the tax consequences of wages is false?

A) Cash basis employees must report wages in the year payment is actually or constructively received.
B) Employees may elect whether or not their employer withholds income and payroll taxes from their wages.
C) Whether wages are currently deductible by the employer depends on the type of services rendered by the employee.
D) Wages paid to business employees are either deductible by the employer or treated as a capitalized cost.