For a small business owner, are federal taxes paid from an employee's check deductible as a business expense? If so, where do they go on Schedule C?

[MinhT · Accepted solution]

Federal tax withheld from an employee's paycheck is not deductible as a business expense.

Payroll taxes (which are the employer's share of FICA taxes and unemployment tax) are deductible as a business expense under Taxes and Licenses.