Lauer Company started its business on July 25, 2019. On August 9, it paid wages for the

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Lauer Company started its business on July 25, 2019. On August 9, it paid wages for the first time and accumulated a tax liability of $48,000. On Friday, August 16, it incurred a tax liability of $52,000. How is Lauer Company treated as a depositor?

a. Monthly because new companies do not have a lookback period.

b. Semiweekly because its accumulated tax liability is $100,000.

c. Monthly because its accumulated tax liability is not more than $100,000 on any one day.

d. Semiweekly for this pay period only and then monthly for the remainder of the year.

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Fundamentals Of Taxation 2020 Edition

ISBN: 9781260483147

13th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler

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