for simplicity, the following ignores state payroll taxes. we can't see your payroll documents so I don't know what makes up the "employee payroll taxes". if these are the Fica and Medicare taxes - the portion that comes out of employee paychecks - along with any withholding taxes they would be a balance sheet if they weren't paid over to the IRS before year-end. ######################
Cash basis employers are supposed to take the deduction for their share of the FICA and Medicare taxes when paid, However, many use a hybrid system where they accrue their portion of payroll taxes, and deduct them in the year accrued. If you use the hybrid system then the balance sheet item should include both the employee and employer share + any withholding taxes that were not paid over to the IRS by year-end.
