Payroll Liabilities are also the amount which is not paid by you but you owe it. This includes the amount of payroll tax which is withheld with you from employees or your company owes it as the payrolls result. Amount that is tracked on the pay checks by using the payroll item is also included in Payroll Liabilities.
Read More: https://www.smbaccountants.com/how-to-zero-out-payroll-liabilities-in-quickbooks/
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