Accrued Payroll is an amount inclusive of all kinds of compensation like commissions, bonuses, and salaries earned by the employees but hasn’t been paid to them by the company. It is a liability for the company and is recorded as a liability in the company’s account books.
Accrued payroll is recorded and counted at the end of an accounting period. It is comprised of the compensation owed to hourly employees for the period from the last days paid through the end of the period. i.e If the accrued payroll on 31st September would come with the salary, employees have earned till 31st September, but won’t be paid until 10th October(Payroll distribution date.)
Accrued payroll is one of the ways that a business can track expenses and budget over time to help plan ahead.
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