Balance Sheet - Liability Accounts

[Riverside-MB-Church]

In reviewing my Balance Sheet, I noted the totals for my payroll deductions are reflected as Current Liabilities. Question? - when I issue check for payroll taxes, should these total increase or decrease? Should there be a beginning balance at the end of the year for these payroll liability accounts? If not, should I start a new beginning balance for my payroll liabilities at the beginning of each year?

[Randy B]

If you followed the set-up, when you issue a payroll check, the amount of taxes withheld from employees is a liability. When you pay the taxes for the period that you withheld taxes, you should debit the liability accounts which should zero them out. The amount in the liability accounts at any one time should be what you have withheld less what you have remitted to the government.