The tax liability report is a summary of payroll withholding for a given period in time. TaxSlayer Payroll’s tax liability report summarizes the amounts withheld by Federal and State withholding per employee. The report will total the amount of the Federal and State Tax Liability due for that period. You may choose to run a report for the quarter or a point in time to view what is due. This report will help you when it is time to make your Scheduled payroll tax deposit. The report will also help you reconcile your quarterly 941.