What is a tax liability report?

A tax liability report shows you how much tax your small business owes – or has already paid – to federal and state agencies. It helps ensure that you remit the correct amount when it’s time to make your scheduled payroll tax deposit.

The report is broken down by tax type so you can easily see what you owe or have paid, including:

federal income taxes withheld
employee and employer portions of Social Security taxes
employee and employer portion of Medicare taxes
state income taxes withheld
federal unemployment taxes
state unemployment taxes

You may choose to run a report for a quarter, month, or any other timeframe so you can see exactly what you were liable for during any period. By viewing your tax liability for a particular period, you can reconcile your payroll tax forms, such as 941, 940, and state forms.