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    IDuran's Avatar
    IDuran Posts: 1, Reputation: 1
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    #1

    Jul 13, 2010, 09:12 AM
    Where is the ER Payroll tax amount recorded? BS, or IS?
    Where would I record the employer payroll tax amount. The BS as a Liability, or IS as an expense?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #3

    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
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