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Wages were scheduled to be paid on December 30, 2023. Due to a system issue, payments were processed on January 3, 2024. How should the payments be taxed?
Correct Answer: B
Comprehensive and Detailed In-Depth Explanation: Underconstructive receipt rulesfrom the IRS, wages aretaxable in the year they are actually paid, not when they were scheduled. Since the paycheck was issued in2024,2024 tax rates and limits apply, even though the work was done in 2023.
