What is a potential legal risk faced by the payroll department?

The correct choice highlights a critical area of legal risk associated with payroll functions—calculations for minimum wage compliance. Ensuring that all employees are paid at least the minimum wage as mandated by law is fundamental to avoiding legal repercussions. Failing to comply with minimum wage laws can lead to legal actions, penalties, and damage to the company’s reputation.

The payroll department must accurately calculate wages, including overtime, and ensure that all employees are compensated in alignment with current minimum wage regulations. This represents a substantial legal requirement; any discrepancies could result in employee claims, lawsuits, and governmental scrutiny.

In contrast, while increasing sales revenue, filing taxes correctly, and enhancing employee benefits are important business objectives, they do not directly pose the same risk concerning legal compliance within the payroll function. These aspects may involve various regulations, but they do not involve the immediate legal implications of complying with wage laws in the same way that minimum wage compliance does.