Question

A semiweekly depositor's payday is Friday the 10th. The following Wednesday, the company deposits 98% of its accumulated payroll tax liability. The shortfall is due:

Answer 1

The shortfall is due to the company depositing only 98% of its accumulated payroll tax liability.

Step-by-step explanation:

The shortfall is due to the fact that the company only deposits 98% of its accumulated payroll tax liability. This means that 2% of the payroll tax liability is not being deposited. This could be due to various reasons, such as administrative errors or intentional decision by the company to withhold a portion of the taxes. Regardless of the reason, the company needs to address this shortfall and ensure that the full amount of payroll tax liability is deposited.