What are Wages Payable?

[denjoshep]

I came across the term “Wages Payable” while studying accounting, and I’m not entirely clear on its meaning. Is it the money a company owes to employees for work already done but not yet paid? Can someone explain how wages payable works, and maybe give an example of how it appears on financial statements?

 

[danisjohn]

The wage payable is the sum that a company owes the employees as a result of performing a service but the payment has not been made. It is an asset to the balance sheet and normally it is included under current liabilities. This is the amount that is generally paid in the next payroll cycle and is an amount of earned wages yet to be paid.

 

[Jarwish]

Wages payable are short-term liabilities representing salaries or wages a company owes to employees for work already performed but not yet paid by the end of the accounting period.

 

[Shane Warne]

Wages Payable This is a liability account of a company balance sheet which represents the wages of employees who have worked but have not received yet. It presents money that is owed to the workers by the business on the services provided by the workers within a given period, which is usually due in the following payroll period.

 

[brook]

The remuneration due is the amount of money that a company owes the employees due to the service executed by them and the payment has not been received. It is an asset to the balance sheet and in the normal course of things it is incorporated under current liabilities. This is the amount that is typically paid in the following payroll cycle and is the amount of earned wages but not paid out.

 

[BlissCore]

Yes, you're right! Wages Payable is the sum of money a company owes to its workers due to already doing the work but they have not yet received the payment. The current liability is captured in the balance sheet since it is customarily paid in the nearest future (as in the next payroll).

Example:
Assuming that employees received 5000 dollars in wages at the expiry of the month but will be paid the following month, the company will record it as:
Debit: Wages Expense $5,000
Credit: Wages Payable $5,000

 

[Mayank]

Wages payable are the amounts a company owes to employees for work performed but not yet paid. They are recorded as a current liability on the balance sheet, representing unpaid wages at the end of an accounting period.