View Full Version : Where is the ER Payroll tax amount recorded? BS, or IS?
IDuran
Jul 13, 2010, 09:12 AM
Where would I record the employer payroll tax amount. The BS as a Liability, or IS as an expense?
pready
Jul 15, 2010, 11:34 AM
It could be both statements. For sure payroll taxes are an expense ccount. If the tax is payable, which means that it has not been paid yet, then it would be on the balance sheet as well.
codyman144
Jul 15, 2010, 04:32 PM
Right when you do payroll you are not actually paying the taxes at that time so the entry would be to:
Debt a Payroll Tax Expense account
Credit a Payroll Tax Liability Expense account