The payroll tax liabilities arising from a given pay period are likely to be larger than the payroll tax expenses.

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Payroll tax liabilities are the amount of payroll taxes owed by the employer to the government based on employee wages and salaries. Payroll tax expenses, on the other hand, represent the actual amount of payroll taxes paid by the employer. The payroll tax liabilities are typically larger than the payroll tax expenses because the liabilities include not only the taxes owed for the current pay period, but also any unpaid taxes from previous periods. Additionally, certain payroll taxes may be deferred or deducted, which could reduce the payroll tax expenses.

The Payroll Tax Liabilities Arising from a Given Pay Period