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View Full Version : When the payroll is paid, payroll taxes become a(n) ________ to the employer.


edmine
Mar 12, 2011, 03:37 PM
The answer is liability but why is it a liability but not an expense

pready
Mar 14, 2011, 02:56 PM
An employer witholds taxes from an employee like FICA, FIT, Social Security, State and Local taxes, and so on. The taxes that are withheld from an employee is not an expense to an employer, but they are a liability because the employer has to submit the taxes on behalf on its employees usually on a monthly or quarterly basis.