The Payroll Liability account is a current liability account that QuickBooks
automatically adds to your chart of accounts when you turn on payroll.
The Payroll Liabilities account tracks taxes that you deduct from
employees' paychecks and hold temporarily until you turn them over to the
government. These include federal and state income withholding taxes, local
taxes, and the employee-paid portion of taxes such as social security and
If you use the Assisted Payroll service, your payroll
liabilities account should show zero amounts for liabilities that are paid by