Payroll liabilities are salaries and wages, employees’ benefits, and payroll taxes levied on the employer. Employees must pay payroll taxes in addition to the payments by employees. It includes FICA and unemployment taxes. The journal entry to record the employer’s salaries expenses and related liabilities assuming these wages will be paid in early February.

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Chapter 11, Problem 7QS

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Concept Introduction: Payroll liabilities are salaries and wages, employees’ benefits, and payroll taxes levied on the employer. Employees must pay payroll taxes in addition to the payments by employees. It includes FICA and unemployment taxes. The journal entry to record the employer’s salaries expenses and related liabilities assuming these wages will be paid in early February.

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