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.
Detailed Explanation
401(k) payable is a current liability representing amounts withheld and/or owed by the employer that must be remitted to the 401(k) plan provider or trustee.
Common Uses
- 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.
Practical Example
- Example: Teams reference **401(k) payable** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.