The payroll liability account is the general-ledger account that holds the statutory amounts a pay run raises - PAYE, UIF, SDL and fund contributions - between the run and the date they are actually paid over to SARS or the relevant fund.
What it means
Each pay run credits the account with the amounts withheld and the employer contributions due; each payment to SARS or a fund debits it back down. A balance that does not clear to the expected amount after a payment run signals a missed or mismatched statutory payment.
Where it fits in
The payroll journal posts into this account as part of recording each pay run, and it functions as a control account - its balance should always equal what is actually owed at that point, checked against the EMP201 declaration and the fund contribution schedules.
Key rules
- Holds PAYE, UIF, SDL and fund contributions owed until paid over.
- Credited by each pay run, debited by each statutory payment.
- Functions as a control account, checked against the EMP201 and fund schedules.
- An unexpected balance signals a missed or mismatched statutory payment.
