Payroll taxes levied against employees become liabilities

Question

Quizplus · Accepted Answer

Payroll taxes become liabilities at the time the payroll is paid because they are withheld from the employee's wages and must be remitted to the government on behalf of the employee. Therefore, they are recognized as a liability at the same time the payroll is paid. The other options are incorrect because payroll taxes are not recognized as liabilities on a certain date, nor are they recognized as liabilities when earned by the employee or at the end of an accounting period.

Payroll Taxes Levied Against Employees Become Liabilities