Question

Employee Payroll Deductions
What classification would this fall under in the balance sheet?

Answer 1

Employee payroll deductions can be classified under the 'Liabilities' section of the balance sheet.

Step-by-step explanation:

Employee payroll deductions can be classified under the 'Liabilities' section of the balance sheet. This is because payroll deductions represent amounts that the company owes to its employees and are considered a liability until they are paid to the respective authorities or vendors. These deductions can include taxes, insurance premiums, retirement contributions, and other benefits withheld from an employee's paycheck.