Does payroll feel like a maze? Understanding payroll liabilities is your shortcut to control. Simply put, a liability is an immediate debt your business records the moment an employee earns wages. It is money you are holding onto before sending it to the government or other agencies. In this video, we break down exactly what you owe and the 3 rules to manage it. THE 4 KEY LIABILITIES Every business deals with these obligations: 1. Compensation: This includes gross wages, overtime, and any accrued wages. 2. Paid Time Off (PTO): You must pay this out when an employee leaves or resigns (depending on state laws). 3. Taxes: This includes FICA (Social Security & Medicare) and federal income tax withholdings. 4. Deductions: These are third-party payments like health insurance premiums, 401(k) contributions, or accrued PTO. THE 3 RULES OF MANAGEMENT To stay safe, follow this framework: 1. Withhold Correctly: Ensure your math is accurate based on each employee's W-4 form. 2. Deposit on Ti...