Payroll liabilities are the amounts you owe but have not yet paid the
government or other agencies (such as an insurance company) for employee tax
withholdings and company contributions.
When you do your payroll, QuickBooks calculates how much you owe for
each tax, deduction, and company contribution payroll item and records it in
Liabilities account. With each paycheck you write, the balance of this
liability account increases.
When you pay your payroll taxes or other payroll liabilities, QuickBooks
decreases the balance of this liability account.
Note: It decreases them for the period that includes the date range
you entered in Show Payroll Liabilities fields in the Pay Liabilities window.
(The actual check date does not matter.)
Important: Always use the Pay Liabilities window to pay your payroll
liabilities. Otherwise, your payments will not be reflected in the
Payroll Liabilities account.
Some payroll liabilities are not company expenses but instead are amounts
that you withhold from employees' pay and that you hold temporarily until
you turn them over to the government. Examples of these are federal and state
income tax withholding.
The amount you owe for a payroll liability is also affected by the
Liability adjustments for an effective date within the specified period
Employee YTD transactions dated within the specified period
YTD liability payments for an effective date within the specified period
Verify payroll liabilities