Explain the responsibilities of and the accounting by employers for deductions from employee payroll.

Employers are responsible for collecting employee federal income taxes and employee Social Security and Medicare taxes from employees.The employers record these amounts as current liabilities and send the amounts to the federal government to discharge their obligation.Payroll deductions can also include nontax voluntary deductions such as insurance and contributions to retirement plans.All payroll deductions are considered to be liabilities until the amounts are transmitted to the designated organization.