What is meant by “Wages Payable” in accounting terms?
Quote from accountinglads on May 30, 2025, 11:33 amwhat are wages Payable? This liability account is for wages owed to employees by the company. It represents what the company is required to do in order to get paid. Wages still owed to an employee on Friday, when the paycheck is issued next Monday, will be shown as Wages Payable. Maintaining this process means that spending is connected to the correct period in the accounts and financial reports match how the accrual system works.
what are wages Payable? This liability account is for wages owed to employees by the company. It represents what the company is required to do in order to get paid. Wages still owed to an employee on Friday, when the paycheck is issued next Monday, will be shown as Wages Payable. Maintaining this process means that spending is connected to the correct period in the accounts and financial reports match how the accrual system works.