What liability account is reduced when the employees are paid?
A) Income Tax Payable, CPP Payable, EI Payable
B) Wages and Salaries Expense
C) Wages and Salaries Payable
D) Payroll Taxes Payable

Question

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When employees are paid, the liability account that is reduced is Wages and Salaries Payable. Option A refers to taxes that are withheld from employees' paychecks and paid to the government by the employer, while option B refers to the expense account used to record the cost of employee wages and salaries. Option D refers to payroll taxes owed by the employer, which are a separate liability from Wages and Salaries Payable.

What Liability Account Is Reduced When the Employees Are Paid