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What amount of employment tax liability must an employer reach before the one-day deposit rule is in effect?

A. $25,000 or more
B. $50,000 or more
C. $100,000 or more
D. $150,000 or more

User XWang
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Final answer:

Option (C), The one-day deposit rule for employment tax liabilities kicks in when an employer reaches $100,000 or more in accumulated tax liability.

Step-by-step explanation:

The amount of employment tax liability an employer must reach before the one-day deposit rule takes effect is $100,000 or more. This rule mandates that if you accumulate $100,000 or more in tax liability on any day during a monthly or semi-weekly deposit period, you must deposit the tax by the next banking day. This IRS regulation is designed to ensure that substantial tax liabilities are paid promptly.

User Amruta Deshmukh
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