Why does spending report show paycheck witholdings?

I recently setup my paycheck in Q to track taxes and withholdings properly, but I notice that they are being including in the spending reports. This doesnt seem right to me. How can I exclude? And am I thinking about this the wrong way? Does it make sense, in fact, to view them as expenditures?

Separately, it appears the spending report on the web is actual a net income report. I downloaded the transactions and see thats what it is doing.

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