Comprehensive and Detailed Explanation:Payroll liabilities (taxes, deductions, and withholdings) must be reconciledregularly to prevent errors and ensure compliance.
Best practice is monthly reconciliation (Option B)to ensure:
Payroll taxes matchgeneral ledger accounts.
Deposits are made on time toavoid IRS penalties.
Payroll liability accounts are balanced beforequarterly tax filings.
Option A (Weekly)is impractical unless payroll runs very frequently.
Option C (Quarterly) and Option D (Yearly) are too infrequentand may result in tax errors or compliance issues.
[Reference:, Payroll.org – Payroll Tax Liability Reconciliation Best Practices, IRS – Payroll Tax Deposit and Reporting Compliance, , , ]
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