What Does “Salaries Payable” Mean?

[rajivkumar]

I came across the term salaries payable in financial statements and wanted some clarity. From what I understand, it’s the amount a company owes employees for work they’ve already done but haven’t been paid for yet. Can anyone explain how salaries payable works in real business situations? How is it recorded, and why is it important for accounting and cash flow? Looking for simple explanations.

 

[Samuel]

Salaries payable is a current liability that represents the amount of money a company owes its employees for wages or salaries that have been earned but not yet paid. It is recorded in a company's accounting books when the payroll period ends but before the employees are paid, and it is reduced when the salaries are actually disbursed.

 

[kebido]

The account of salaries payable is a liability account that reflects the sum of money a given company, yet, owes its employees who have already performed jobs but have not been paid yet. It normally accrues in the end of an accounting period. Upon making the payments, the company clears the balance.

 

[Grayson]

“Salaries payable” is just an accounting term for wages the company owes employees but hasn’t paid yet. It’s money earned by workers that’ll be paid out soon, so it shows up as a liability on the balance sheet.

 

[Shane Warne]

Salaries Payable is an accounting term used to refer to, the total salary expense that the company has already incurred but was not paid to the workers as at the balance sheet date. It is a debt (sum of money owed) and reflects on the books of the company before payment I made.

 

[Sophie]

Salaries Payable This is what a company owes the employees in terms of payments due but not yet received. It is recorded as a current liability in the balance sheet up to the payment of the salaries.

 

[nikhilrajoria]

It is an account of liabilities where the wages that are due to employees are recorded but the company has not paid. It will be recorded at the end of the period as short-term commitments to employees up to the next payroll.