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    edmine's Avatar
    edmine Posts: 3, Reputation: 1
    New Member

    Mar 12, 2011, 03:37 PM
    When the payroll is paid, payroll taxes become a(n) ________ to the employer.
    The answer is liability but why is it a liability but not an expense
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    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.

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