Unemployment tax payable

Unemployment tax payable is a liability account that contains the amount owed by a business to state and federal governments for the unemployment tax. The amount in this account is likely to be relatively small in proportion to other liabilities. Since the amount stated in the account must be paid within a short period of time, the account is classified as a current liability.

The amount in the account can vary based on several factors, such as the employment history of the business, the rate charged by the applicable government, the number of employees, and employee pay rates.

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The Balance Sheet