Payroll taxes payable

Payroll taxes payable is a liability account that contains the combined total of payroll taxes deducted from employee pay and the employer portion of payroll taxes. The balance in this account is increased by the addition of new liabilities, and reduced by payments made to the applicable governing authorities. Thus, the account only contains unremitted payroll taxes.

This account is classified as a current liability, since the amounts in it are due in less than one year.

Related Courses

The Balance Sheet