The payroll liability account is always affected on the paycheck date, regardless of what type of payroll item is used.
Because of the way payroll expense amounts are posted it may be difficult at first to determine how the total payroll expense amount on the Profit and Loss is calculated. The amount does not normally match either gross or net payroll amounts for the same period. Instead this figure is usually the combined amount of all earnings items, plus company contribution items. In the example above, the paycheck would contribute an amount of $1101 ($1000 earnings plus $101 company contribution) to the various payroll expense accounts on the profit and loss.