Question

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

A. With its quarterly return
B. On or before its next deposit due date
C. The first Wednesday or Friday, on or after the 15th of the following month
D. On the next Wednesday or Friday after the first of the next month.

Answer 1

The shortfall in the payroll tax deposit for a semiweekly depositor must be paid by the next deposit due date following the shortfall occurrence.

Step-by-step explanation:

The question pertains to the time frame within which a semi-weekly payroll tax depositor must remit any shortfall in their payroll tax deposit. Since the company in question deposits 98% of its accumulated payroll tax liability after payday, the remainder, or shortfall, is due on the deposit date following the discrepancy. This shortfall must be deposited by the next deposit due date, as stipulated by the payroll tax deposit rules. Not adhering to the deposit schedule can lead to penalties for the employer.