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that depend on who will pay the tax
if its deducted from the employees then it's a liability
if its the company to pay tax and the employees received there salary as it is then it's an expense
It will be an expense as part of salaries and wages and will be a liability until it is paid to the tax authority.
Payroll taxes withheld from employees' are liabilities of the employer.
I think after all it is just taxes , therefore it is expenses.
