Employee Payables

A: Employee Payables are liabilities owed by the company to its employees, such as: accrued salaries and wages, bonuses, travel allowances, housing allowances, and end-of-service benefits. These payables are recorded at the end of the accounting period if the service has been rendered but cash has not yet been paid.

A: Salaries Payable is a short-term liability (paid within a month). End-of-Service Benefits is a long-term provision (paid upon employee termination) and is calculated monthly or annually based on labor law (e.g., 15 days per year of service for employees who have completed one year or more).

A: At month-end, an accrual entry is recorded: Dr. Salaries Expense (for the gross salary amount), Cr. Salaries Payable (for the net salary after deductions), Cr. Employee Deductions (for deductions such as social insurance and taxes).