cancel
Showing results for 
Search instead for 
Did you mean: 
ohio_coffee
Level 1

Payroll company pays taxes - Expense or Liability?

Hi all!

 

My payroll provider withdraws payroll taxes weekly and then pays them. Could I make my life easy and just call them an expense?

 

 

Solved
Best answer April 26, 2021

Best Answers
MarshallA
Intuit

Payroll company pays taxes - Expense or Liability?

Hello,

 

If the money they take from you goes to pay the taxes you owe, then to YOU, its an expense.  To THEM,it's a liability because they are just holding onto the money until they send it to the agency.

 

The taxes you owe, along with gross wages are all part of Payroll Expenses.

View solution in original post

1 Comment 1
MarshallA
Intuit

Payroll company pays taxes - Expense or Liability?

Hello,

 

If the money they take from you goes to pay the taxes you owe, then to YOU, its an expense.  To THEM,it's a liability because they are just holding onto the money until they send it to the agency.

 

The taxes you owe, along with gross wages are all part of Payroll Expenses.

View solution in original post

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up