What is accrued payroll?
Accrued payroll would be wages, salaries, commissions, bonuses, and the related payroll taxes and benefits that have been earned by a company’s employees, but have not yet been paid or recorded in the company’s accounts.
For example, the accrued payroll as of December 31 would include all of the wages that the hourly-paid employees have earned as of December 31, but will not be paid until the following pay day (perhaps January 5). The employer’s portion of the FICA, unemployment taxes, worker compensation insurance, and other benefits pertaining to those wages should also be included as accrued payroll in order to achieve the matching principle of accounting.
Learn more about Payroll Accounting.
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4 Responses to “What is accrued payroll?”
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IF a company pays employees on the last day of the month (31th( for work performed from 16 - 31 and the withdrawl is posted on the bank stmt on the 31th.. There should be no need for an accrual, correct?
How do you account for BACS recall made to the bank after forwarding the total net payment for the month.
can you tell about government and Non- Profit organization accounting ??
thanks