Does a "payroll tax expense" go under "current Liabillities" in a balance sheet?

No, not at all! The fact that the account has expense in the title means that it is an expense, and it needs to go in the expense part of your income statement! If you haven't yet paid the payroll taxes, you would credit an account called "payroll taxes payable."

If you owe money and pay it now, it's an expense (matching principle).
If you owe money and you're going to pay it later on, it's a liability (because you're held liable to pay the money). A current liability will be paid within one year, otherwise it's a long term liability.

nancina is right. Im not going to try to rephase what he said but

Liabilties..... would if the were not paid yet ... a payable accout

It would be in you Equity Column and then move to your income statement if it was a "payroll tax expense"

absolutely!

Yes it would be included in the "current liabilities" account. You will need to remit that amount to the government's taxing authorities usually within a period of a year or less, meaning that it is indeed a current liability.

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