Smith, 26, has featured 27 times for the Lions this season, scoring one goal.
He joined the club last summer from National League North side Darlington.
The left-back, who was a part of the Barnsley squad that was promoted to the Championship in 2016, has also featured for Gateshead, Northampton Town, Chesterfield and Harrogate Town.
Smith joins Liversegde who currently sit in 21st place in the Northern Premier League Premier Division, and will go into contention for their next game away at Warrington Town on Saturday.
Photo credit: Guiseley AFC
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