Parrish Sales withholds $720 from Art Parrish's paycheck for federal income tax. This amount is part of the company's payroll tax expense.

Question

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The $720 withheld from Art Parrish's paycheck for federal income tax is not part of the company's payroll tax expense; it is a liability that the company must remit to the government on behalf of the employee. Payroll tax expense refers to the employer's own tax obligations, such as Social Security and Medicare taxes.

Parrish Sales Withholds $720 from Art Parrish's Paycheck for Federal