Asked by Jaqueline Martinez on May 22, 2024
Verified
Proper payroll accounting methods are important for a business for all the reasons below except
A) good employee morale requires timely and accurate payroll payments
B) payroll is subject to various federal and state regulations
C) to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies
D) payroll and related payroll taxes have a significant effect on the net income of most businesses
Payroll Accounting
The process of recording and managing all financial transactions related to a company's payment of salaries, wages, and other compensations to employees.
Employee Morale
The general perspective, mood, contentment, and self-assurance that staff experience in the workplace.
Cash Flow Problems
Financial difficulties faced by a business due to inadequate cash to cover its obligations.
- Recognize the significance of proper payroll accounting and its impact on business operations.
Verified Answer
NB
Nicole BushellMay 26, 2024
Final Answer :
C
Explanation :
This statement is incorrect as delaying payroll taxes can lead to significant penalties and interest charges from federal and state agencies, which can further worsen a business's cash flow problems. Proper payroll accounting methods are important for all other reasons stated in the options.
Learning Objectives
- Recognize the significance of proper payroll accounting and its impact on business operations.