The GL Account for default payroll withholdings is preset but can be changed to fit the needs of your company. For instance, you may want to record your FICA and federal payroll tax withholdings to one liability account called Payroll Tax Withholdings. Or, you may prefer to have a separate GL account for Social Security, Medicare Taxes, and Federal withholdings. Typically, amounts withheld from employee paychecks are recorded to liability accounts as they are due to agencies or organizations outside the company. See instructions on adding new GL accounts for guidance on setting up GL accounts for specific liabilities.