What Are Payroll Liabilities? A Must-Read For OnlyFans Creators

If you’re an OnlyFans creator pulling in steady income, you’ve probably already learned that taxes can feel overwhelming. Between tracking your business expenses, filing quarterly estimated taxes, and handling self-employment taxes, there’s a lot to keep straight. But if you’ve started paying assistants, editors, or other team members, another layer comes into play: payroll liabilities.

So, what are payroll liabilities? In short, they’re the amounts you owe to others after running payroll but before making the actual payments. That could mean wages you still owe employees, federal and state income taxes withheld, employer payroll taxes, or even unpaid employee benefits.

This guide breaks down everything you need to know about payroll liabilities in plain language. Whether you’re brand new to hiring help or you’ve been managing a team for a while, understanding payroll liabilities is key to avoiding penalties, keeping your books clean, and staying stress-free during tax season.

What Are Payroll Liabilities?

Payroll liabilities are the amounts you owe but haven’t yet paid related to payroll. Think of them as “promises to pay.” They appear as short-term liabilities on your balance sheet until they’re cleared.

Here’s a simple way to picture it:

• Employee wages – You owe your assistant $2,000 for this pay period. Until you actually send that money, it’s a payroll liability.
• Taxes withheld – You withheld $300 in federal income tax from your employee’s paycheck. Until you send it to the IRS, that $300 sits as a liability.
• Employer payroll taxes – You, as the employer, owe your share of Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA). Those also sit as liabilities until paid.
• Other deductions – Contributions to benefits, union dues, or even wage garnishments ordered by a court are liabilities until transferred.

Payroll Liabilities vs Payroll Expenses

It’s easy to mix up payroll liabilities with payroll expenses, but they’re not the same thing.

Payroll Liabilities	Payroll Expenses
Money owed but not yet paid	The cost of paying employees
Examples: unpaid wages, withheld taxes, employer FICA	Examples: gross wages, employer benefits contributions
Lives on the balance sheet as a liability	Lives on the income statement as an expense

In short, expenses are the cost of running payroll, while liabilities are obligations you still need to pay off.

Types of Payroll Liabilities

Payroll liabilities can be broken down into several categories. As an OnlyFans creator who might employ editors, assistants, or social media managers, these could all apply to you.

Employee Wages and Salaries

• Gross wages for regular hours, overtime hours, and bonuses.
• Any unpaid employee paychecks until cleared.

Withholding Taxes

• Federal income tax withheld from employee paychecks.
• State income tax and local taxes (if applicable).
• Additional Medicare tax withheld for high earners.

Employer Payroll Taxes

• Employer’s share of Social Security and Medicare (FICA).
• Federal Unemployment Tax (FUTA).
• State Unemployment Tax (SUTA).

Employee Benefits and Deductions

• Employer-sponsored benefits like health insurance.
• Retirement plan contributions.
• Paid time off (PTO) and accrued PTO liability.
• Wage garnishments, child support, or union dues.

Other Payroll Costs

• Payroll processing costs or payroll software fees.
• Workers’ compensation insurance.

Why Payroll Liabilities Matter for OnlyFans Creators

If you’re self-employed and working alone, payroll liabilities may not apply yet. But once you hire employees, even part-time, these obligations land on your desk. Ignoring them can lead to IRS penalties, late fees, and stress during tax season.

• Cash flow impact – Liabilities represent money you owe, not optional costs. You need to plan cash flow so the funds are available when payments are due.
• Legal compliance – Employment taxes are non-negotiable. Missing deposit requirements can trigger audits or fines.
• Clean books – Payroll liabilities must be properly accounted for in payroll records and tax forms.

Creators earning $20,000–$90,000 per month often scale fast. Having the right systems in place for payroll processing keeps growth sustainable.

How Payroll Liabilities Work in Practice

Let’s walk through a simple example. Suppose you run payroll on October 15, and your editor earns $2,500 for the pay period. From this amount, you withhold $250 for federal income tax, $150 for state income tax, and $200 for the employee’s share of FICA. As the employer, you’re also responsible for another $200 in FICA, along with $50 for FUTA.

After this payroll run, your liabilities would include $2,500 in wages payable until the paycheck clears, $250 in federal income tax payable, $150 in state income tax payable, $400 in total FICA payable (split between you and your employee), and $50 in FUTA payable.

All of these liabilities stay on your balance sheet until you pay the employee and send taxes to the proper government agencies.

Common Mistakes Creators Make with Payroll Liabilities

1. Misclassifying contractors as employees – Independent contractors don’t create payroll liabilities the same way employees do. Misclassification can trigger IRS audits.
2. Forgetting employer payroll taxes – Self-employed individuals already pay both halves of Social Security and Medicare. But once you hire, you owe employer portions too.
3. Missing deposit schedules – Federal taxes have strict deposit requirements. Pay late and you’ll face penalties.
4. Failing to track benefits – Employer contributions to health plans, retirement, or PTO must be properly recorded.
5. Not reconciling liabilities monthly – Skipping reconciliations leads to surprises at tax season.

How to Manage Payroll Liabilities

Managing payroll liabilities becomes much easier when you follow a few consistent practices. Using payroll software can help automate calculations and tax filings, reducing the chance of errors. It’s also smart to reconcile your records every month by comparing payroll reports with your bank statements. Keep everything organized, including employee pay rates, annual salaries, accrued PTO, and deductions, so nothing gets overlooked. Many creators also set aside funds in a separate payroll reserve account to make sure tax payments are always covered. Finally, working with a tax professional who understands creator businesses ensures you get accurate advice tailored to your situation.

FAQs

Do OnlyFans creators pay taxes?

Yes, OnlyFans income is considered self-employment income even if you don’t have employees. You are responsible for federal income tax, self-employment tax, and any applicable state or local income taxes. Tracking your gross income and business expenses helps ensure accurate tax reporting and compliance.

How do I file OnlyFans taxes?

Most creators need to file a Schedule C for business income and Schedule SE for self-employment taxes. If you hire employees, you also need payroll tax forms like Form 941 or 940. Keeping detailed records of income and expenses simplifies filing and reduces your tax liability.

Is OnlyFans considered online publishing for taxes?

No, OnlyFans earnings are treated as self-employment income by the IRS. It is not classified as online publishing under U.S. tax law. This means creators must follow self-employment tax rules rather than publishing-specific tax guidelines.

What type of business is OnlyFans for taxes?

Most creators operate as sole proprietors or single-member LLCs for tax purposes. If your business grows and you hire employees, you must comply with employer payroll rules. This includes paying employment taxes, filing payroll forms, and maintaining accurate payroll records.

Do OnlyFans models pay taxes quarterly?

Yes, because taxes are not automatically withheld, creators must pay quarterly estimated taxes. These payments cover federal income tax, self-employment tax, and any state income tax if applicable. Paying quarterly helps avoid penalties and a large tax bill at the end of the year.

Conclusion

Payroll liabilities might sound technical, but they’re simply amounts you owe related to running payroll. For OnlyFans creators who are scaling their business and hiring help, understanding and managing payroll liabilities is just as important as tracking personal business expenses.

By knowing the difference between payroll liabilities and payroll expenses, keeping track of federal and state income tax withholdings, and using payroll software to simplify the process, you can stay compliant and avoid IRS penalties. If you’re serious about growing your OnlyFans business, taking control of payroll liabilities today will save you stress, money, and time tomorrow.

At The OnlyFans Accountant, we handle payroll liabilities and OnlyFans taxes with clarity and precision. Protect your income, avoid penalties, and maximize your write-offs. Contact us today to book your free consultation and secure your financial confidence for 2025.