Question

Monies deducted from employee paychecks for income taxes must be deposited in a bank authorized by which agency?

a) IRS
b) FDA
c) OSHA
d) SEC

Answer 1

Income taxes deducted from employee paychecks must be deposited with a bank authorized by the IRS, which oversees federal tax administration.

Step-by-step explanation:

Monies deducted from employee paychecks for income taxes must be deposited in a bank authorized by the IRS, the Internal Revenue Service. None of the other options listed (FDA, OSHA, SEC) are responsible for the collection or management of income taxes. The IRS oversees all aspects of federal tax administration and requires employers to deposit employment taxes, such as federal income tax withheld and both employee and employer social security and Medicare taxes, using electronic funds transfer (EFT). The deposit schedule could be monthly or semi-weekly depending on the tax liability of the company.