Payroll liabilities and tax deposits
Track withheld and employer payroll taxes and deductions owed, record deposits and remittances, and reconcile payroll liability accounts to zero.
- Plans
- Core and above
- Availability
- Available
- For
- Owners, Bookkeepers
- In KontoCore
Payroll → Liabilities
Electronic deposits: Provider connection required.
What this does
Every posted pay run adds amounts owed to agencies and benefit vendors. This page groups them by payee and due date and records payments against them.
How to
Record a deposit
- 1Payroll → Liabilities; select the agency and period.
- 2Choose Record payment, the bank account, and date.
- 3Enter the reference from the agency or provider and save.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Open | Owed, not yet paid. |
| Partially paid | Some remains. |
| Paid | Settled. |
Corrections, voids, and reversals
- Posted records are never edited in place. Void or reverse them; KontoCore records a linked reversing entry with the user, time, and reason.
Provider and availability notes
- Recording a payment does not send money. If a provider remits taxes, import or match its debits instead of recording them twice.
Permissions
- Owners, administrators, and users with bookkeeping or inventory permission can create and post. View-only users can read but not change records.
What happens in your books
Paying $573 of payroll taxes:
| Account | Debit | Credit |
|---|---|---|
| Payroll Liabilities | 573.00 | |
| Checking | 573.00 |
Common mistakes
- Categorizing the bank debit as tax expense instead of paying the liability, leaving the liability open and expense doubled.
Troubleshooting
Liability account doesn’t clear
A deposit was categorized in Banking as an expense; recategorize it to Payroll Liabilities.
Related articles
Payroll in KontoCore: what it does todayHow payroll works in KontoCore: importing provider payroll, previewing calculations for 2026 federal and Ohio rules, and which filing and payment steps need a provider.Running payroll and pay statementsPrepare a pay run, review calculated gross-to-net figures, approve and post the payroll journal, and produce pay statements — or import a run from your provider.Reviewing bank transactionsDecide whether each imported transaction is a new categorized record, a match to an existing record, or a transfer between your own accounts.Payroll filings and compliance readinessSee which payroll returns and year-end forms are due, check readiness, and prepare figures — while filing itself happens through a provider or your accountant.
Was this helpful?
Last reviewed October 6, 2026