Accrued Payroll Taxes

Accrued Payroll Taxes are those payroll taxes that are due to government authorities, but not yet paid.  Typically, the accrued payroll taxes include FICA, along with FUTA tax, which will be deducted from each employee's gross earnings.  Accrued payroll taxes recognize the timing difference between the creation of the liability, and the payment of the tax.

Since accrued payroll taxes are usually payable within a fiscal period, they are recorded as an accrued liability in the current liabilities section of the company's balance sheet.