Multiple Choice
Which of the following is true regarding blanket inventory liens?
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9. Current Liabilities
Types of Liabilities
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Which one of the following is NOT considered a payroll liability?
A
Federal income tax withheld
B
Employee FICA taxes payable
C
Employer's portion of Medicare taxes
D
Accounts payable to suppliers
Verified step by step guidance1
Understand the concept of payroll liabilities: Payroll liabilities are obligations that a company owes related to employee compensation, such as taxes withheld from employees' paychecks and employer payroll taxes.
Review the options provided: Federal income tax withheld, Employee FICA taxes payable, Employer's portion of Medicare taxes, and Accounts payable to suppliers.
Analyze each option: Federal income tax withheld and Employee FICA taxes payable are amounts deducted from employees' paychecks and are considered payroll liabilities. Employer's portion of Medicare taxes is an employer obligation related to payroll and is also a payroll liability.
Consider the nature of Accounts payable to suppliers: Accounts payable to suppliers refers to amounts owed to vendors for goods or services purchased on credit. This is not related to payroll and is classified as a trade liability, not a payroll liability.
Conclude that Accounts payable to suppliers is NOT considered a payroll liability because it is unrelated to employee compensation or payroll taxes.
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