401(k) payable
Financial Dictionary — Pensions & Payroll
Definition
This current liability account reports the amount a company owes (is required to remit) for its employees' 401(k) program as of the date of the balance sheet.
Use cases, Example & Why it matters
Use cases
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Example
- Example: Teams reference **401(k) payable** when defining terms in manuals, policies, or training materials.
Why it matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.