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-   -   When the payroll is paid, payroll taxes become a(n) ________ to the employer. (https://www.askmehelpdesk.com/showthread.php?t=561681)

  • Mar 12, 2011, 03:37 PM
    edmine
    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
  • Mar 14, 2011, 02:56 PM
    pready

    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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