Employer payroll question - what account is debited for payment of federal unemployment taxes?

For FUTA payments, you'd typically debit your Federal Unemployment Tax Payable account (or FUTA Tax Payable if you have it set up separately). This clears the liability you've been accruing when you run payroll. The credit would be to Cash/Checking. Most small businesses set up a separate payroll liability account for each tax type - makes it much easier to track what you owe.

wait isnt this more of an accounting question than unemployment? thought this forum was for people trying to get their benefits from NYS Department of Labor

I had this same confusion when I started my consulting business last year! My accountant told me to set up separate liability accounts for each payroll tax - Federal Income Tax Payable, Social Security Tax Payable, Medicare Tax Payable, FUTA Tax Payable, and State Unemployment Tax Payable for the NYS Department of Labor. Each payroll you credit these liability accounts, then when you pay the taxes you debit them. Much cleaner than lumping everything together.

Just make sure you're staying current on those payments! I've seen small businesses get behind on payroll taxes and it becomes a nightmare with penalties and interest. The IRS and NYS Department of Labor don't mess around with late payments.

As someone who's been through several NYS Department of Labor audits, I'd also recommend keeping detailed records of when you accrue vs when you pay these taxes. The timing differences can get tricky during audits - they want to see that you're properly matching the liability recognition with the actual payroll periods. Setting up a simple spreadsheet alongside your accounting entries can save you headaches later if questions come up about your unemployment tax compliance.