question about p and l statement

[michaelrack]

On an income statement, are social security taxes (for example, social security taxes paid by a car manufacturer for assembyline workers) included in cost of goods sold or in taxes?

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[AndyFromMDTAXES]

I would say that the payroll taxes would appear in the income statement in the same place where the wages are reported. So the payroll taxes paid on wages reported as part of Cost of Sales would be reported in that section of the P&L, while payroll taxes paid on wages reported as part of overhead expenses would be reported in that section of the P&L. That's my understanding of the Financial Reporting rules.