The employer should record deductions from employee pay as:
A)Employee receivables.
B)Payroll taxes.
C)Current liabilities.
D)Wages payable.
E)Employee payables.

Question

Quizplus · Accepted Answer

Deductions from employee pay are amounts that have been withheld but have not yet been remitted to the appropriate recipients. Thus, they represent a current liability for the employer until they are paid out. Option A is incorrect because it implies that the employee owes the employer money, which is not the case. Option B refers specifically to taxes that are withheld from employee pay, while there may be other types of deductions as well. Option D refers to the amount of payroll that has been earned but has not yet been paid out, which is different from deductions. Option E is not a standard accounting term and is not an appropriate description of the situation.

The Employer Should Record Deductions from Employee Pay As