In a December claim scenario, are you justified in delaying payment to the next calendar year?

• A. You should always delay to benefit yourself.
• B. You should not delay; pay immediately.
• C. If the claim occurs on December 29, you should delay until next year to reduce tax.
• D. If normal business practice would delay reporting until the next month, it is acceptable to delay; but you must not manipulate timing for personal gain.

Answer: (D)

Timing of payments and reporting should follow established business practices, not personal gain. In a December claim, delaying payment into the next calendar year is only appropriate if the normal process already delays reporting to the next month as part of the standard close cycle. This keeps actions consistent with documented procedures and internal controls. Delaying simply to gain a tax or financial advantage would be improper, so the acceptable approach is to align with the usual practice and avoid any manipulation of timing for personal benefit.