Asked by Latoya Alexander on Jul 02, 2024
Verified
What type of account is Payroll Tax Expense?
A) Asset
B) Pre-paid liability
C) Contra-revenue
D) Expense
Payroll Tax Expense
Charges levied on both employers and employees, calculated as a proportion of the wages that employers distribute to their workers.
- Familiarize yourself with the architecture and complexion of payroll accounts, which include expenses, liabilities, and assets linked to payroll.
Verified Answer
HG
Harsh Goyal6 days ago
Final Answer :
D
Explanation :
Payroll Tax Expense is classified as an expense account because it represents the cost associated with employing labor, including taxes that the employer must pay based on the wages and salaries of employees.
Learning Objectives
- Familiarize yourself with the architecture and complexion of payroll accounts, which include expenses, liabilities, and assets linked to payroll.