Rainflurry
Level 15

Employees and payroll

@macbuilthomes 

 

When you withhold the employee's portion of FICA and federal and state income tax, you have both an expense and a liability because you owe that money to the state and the IRS.  It sits as a liability until you pay the state and IRS (depending on your withholding deposit schedule), at which time, it's no longer a liability.