Tax payable is typically classified as a liability on the balance sheet, which means it is recorded as a credit. When a business incurs a tax obligation, it increases its tax payable account with a credit entry. Conversely, when the tax is paid, the tax payable account is debited to reflect the decrease in the liability.
Debit Payroll tax Expense Credit Payroll tax payable debit Payroll tax payable Credit Cash / bank
payable is credit
Interest payable is debit.
Debit FUTA Tax Expenses xxxx Credit FUTA Tax Payable xxxx
credit
Debit Payroll tax Expense Credit Payroll tax payable debit Payroll tax payable Credit Cash / bank
payable is credit
Interest payable is debit.
Debit: Income tax expense Credit: Income tax payable
All payable maintain a credit balance. A payable is a liability account and therefore like a liability does increase with a credit and decrease with a debit.
debit taxes expense and credit taxes payable
Debit FUTA Tax Expenses xxxx Credit FUTA Tax Payable xxxx
credit
Debit FICA Tax payable Credit Cash / bank
debit
[Debit] Purchases [Credit] Accounts payable
credit