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Payroll Liabilities Amounts owed to employees for work performed are recorded separately from  accounts payable. Expense accounts such as salaries or wages expense are  used to record an employee's gross earnings and a liability account such as  salaries payable, wages payable, or accrued wages payable is used to record the  net pay obligation to employees. Additional payroll-related liabilities include  amounts owed to third parties for any amounts withheld from the gross earnings  of each employee and the payroll taxes owed by the employer. Examples of 
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Unformatted text preview: withholdings from gross earnings include federal, state, and local income taxes and FICA (Federal Insurance Contributions Act: social security and medical) taxes, investments in retirement and savings accounts, health-care premiums, union dues, uniforms, alimony, child care, loan payments, stock purchase plans offered by employer, and charitable contributions. The employer payroll taxes include social security and medical taxes (same amount as employees), federal unemployment tax, and state unemployment tax....
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This note was uploaded on 12/25/2011 for the course FIN 3312 taught by Professor Staff during the Spring '08 term at Texas State.

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