Question

What is the amount of salary expense based on the following?

The following totals for the month of April were taken from the payroll register of Rigway Company.

Salaries	$235,000
FICA taxes withheld	12,580
Income taxes withheld	10,000
Medical insurance deductions	1,600
Federal unemployment taxes	128
State unemployment taxes	2,850

Answer 1

The payroll withholding taxes are amounts withheld from employees wages and salaries.The amounts withheld are actually the employees Money that the employer is required by law to withhold and remit to the government. In other words, the employer is acting as an agent by withholding and remitting the employees money.

So the payroll taxes withheld from employees are a current liabilities of the employer untill the amount are remitted to the government.

The taxes withheld from employees are not an expense of the company that withheld them.