Money withheld from employees' gross earnings to pay federal and state and local (if any) income taxes and certain other taxes are held in ________ accounts.

Trust Accounts

Financial accounts held by a trustee for the benefit of a third party according to the terms of a trust agreement.

Gross Earnings

The total amount of money earned by an individual or company before any deductions such as taxes or benefits.

Income Taxes

Taxes levied by a government directly on income, both earned (salaries, wages, commissions) and unearned (dividends, interest, rents).

Absorb information on the dynamics of managing payroll, paying special attention to deductions, and delineating gross from net earnings.

Verified Answer

Final Answer :

tax liability

Learning Objectives

Absorb information on the dynamics of managing payroll, paying special attention to deductions, and delineating gross from net earnings.