The employee 60 is never expense; that part is wrong. It's already part of 2,000 that is Gross Wages as expense. That is supposed to post the employee deduction to Liability = to be sent on, later. The 60 should not show Separately as expense in addition to Gross Wages as expense. Payroll Expense has Gross Wages. Employer has Tax Expense for FICA, SUI, FUTA, etc. Employer has Benefit Plan Expense for their match (1041.66).

Payroll Liability should have two entries into it from the One paycheck, the 22nd: Employee deducted amount and the Employer match amount. Additional entries would be tax liability (employer + employee shares). That's why Liability gets paid out at a later date, which is not More Expense. It's banking Expenditure = cash flow.

If you are earning 2,000; you don't get it. You have employee tax deductions, sent on your behalf. You have Retirement contribution deducted, send on your behalf. "sent on your behalf" = the employer is Holding your funds = they are responsible, or have the Liability to send in your money.

All of these deductions do not change Expense; you still are getting 2,000 gross wages; it just isn't all paid to you.