What is Salaries Payable?

[accountinglads]

Once in the accounting period, salaries payable is utilized at the end to record salaries accrued to employees. These sums signify salaries which employees have accumulated but did not yet receive from the company. Just as wages payable ensure the financial statements reflect all the expenses made, salaries payable ensure all such expenses are covered be it in form of payment. It is a typical account for the salaried employees; it is shown as current liability in the company balance sheet reflecting the company’s promise to remunerate employees in good time.