The Income Tax Deducted account would normally be a liability account. The default in the sample file is 21900 (2190 if you use 4 digits)

As Randy has said, it is a liability account. However, I am assuming you are trying to use the Default Expense account on the Vendor ledger when you are setting up the name and address, etc of the Receiver General - Payroll vendor.

Because you are dealing with EI, CPP and Income tax in most provinces, there is not one default account so you can't really use the default on the vendor setup. Look through the help on doing a Payroll Remittance. There is a remittance function that knows through the linked accounts which accounts hold the amounts owing. You can also open the sample file and play with it to see how it works too.

I personally still just use a recurring purchase invoice entry with the three accounts already listed in the order they are on the balance sheet. When I do my remittances, I run the balance sheet for the end of the period and enter the amounts I see against the same accounts.

In addition to the advice above,

Richard S. Ridings said:

I personally still just use a recurring purchase invoice entry with the three accounts already listed in the order they are on the balance sheet. When I do my remittances, I run the balance sheet for the end of the period and enter the amounts I see against the same accounts

That substantially gets the same result as using the built-in remittance feature, except that when using the Payable invoice, anyone with access to Payables can see the invoice. and anyone with access to payments can see the payment.   Payroll remittances have separate security access can only be entered / viewed by a user with access to Payments.

I also use the built-in remittance feature because (once it's set up!), the remittance pay period dates are filled in automatically, the reports on balances due are easy, and unlike what I do, the computer doesn't write down the wrong numbers from the G/L or Trial Balance report, or add them together wrong.  

But I still use Outlook to remind me of when the remittances are due, so I suppose I haven't totally swallowed the 'blue pill' for Sage 50.

RandyW said:

Payroll remittances have separate security access

Randy, where is the setting for this?  It's been a while since I played with security.

I stand corrected! Anyone with access to make payments can view / record a payroll remittance.

But

While Payroll Remittances create a transaction that is posted to the same G/L accounts in the same way as a normal Accounts Payable transaction, a remittance has no tItLu / tItLuLi (Invoice screen) entries and can't be viewed from the Accounts Payable Invoice screen.

So there are some here who have a little more access than I thought they had, I had assumed one needed payroll AND payment rights to enter / view / modify a remittance. 

'Payments' is an all-access pass to all kinds of payments, apparently.

Yes, the info is in tITRmtH and tITRmtL.

If you log is as a subsidiary user with report capabilities to payables, you can see the details in the Vendor Aged report but without access to payments, lookup is blocked.