Final answer:
The lookback period for calendar year 2016 for Payroll Tax Deposit Rules is 12 months.
Step-by-step explanation:
The lookback period for calendar year 2016 for Payroll Tax Deposit Rules is Option D: Lookback period is 12 months.
Under the Payroll Tax Deposit Rules, employers are required to deposit federal income tax withholdings, social security tax, and Medicare tax according to a specific deposit schedule. The lookback period is the timeframe used to determine the deposit schedule.
In this case, the lookback period for calendar year 2016 is a 12-month period, meaning that the deposits are based on the tax liabilities incurred during that period.
For example, if an employer has a lookback period from July 1, 2015, to June 30, 2016, the payroll tax deposits for calendar year 2016 will be based on the tax liabilities during that lookback period. This helps ensure that employers are able to meet their payroll tax obligations in a timely manner.