Which of the following entries reflects deductions from gross pay?

The correct answer reflects how deductions from gross pay are recorded in governmental accounting. In this scenario, the debit to Expenditures Control represents the total amount of wages incurred by the government entity, while the credit to Due to Federal Government indicates the liabilities incurred related to payroll deductions, such as federal income taxes and Social Security taxes withheld from employees’ paychecks.

When gross pay is calculated, the entity need to account for various deductions that are to be remitted. The entries in the correct option show how these deductions are represented as an obligation (liability) to the government, which reflects a commitment to pay those withheld funds. Thus, this entry appropriately portrays the financial transactions related to employee compensation and the associated liability for payroll deductions.

In contrast, the other choices do not depict deductions from gross pay. For instance, merely crediting Wages Payable or Cash signifies that payments are being made or recorded but does not illustrate the withholding that would typically be deducted from the total gross pay. Understanding this transactional approach reinforces the significance of correctly representing payroll deductions in governmental accounting.