Question

What determines the tax liability in the event of an off-cycle check?

A. When the employee cashes the check
B. When the employee receives the check
C. The check date
D. The pay period the check is covering

Answer 1

In the event of an off-cycle check, the tax liability is determined by the check date.

Step-by-step explanation:

The tax liability in the event of an off-cycle check is determined by C. The check date . When it comes to taxes, the check date is the crucial factor because it determines the tax year in which the income is reported and taxed. So, if an off-cycle check is issued in December but dated for January of the following year, the income will be taxed in the following year.