Payroll taxes owed by the employer (such as FICA and FUTA) are recorded as a current liabilitybecause they must be paid within a short period.
Long-term liability (C) applies to debts due over time, not payroll taxes.
Expense accounts (D) track costs but do not reflect unpaid obligations.
References:
Payroll Accounting Guidelines (Payroll.org)
IRS Employer Tax Guide (Publication 15)
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