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Employee Costs as a Liability

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Natalie Dow

04 Apr, 2013 08:55 PM

Hello,

I have created a container under employee costs which contains an account for each of my employees. I will record transactions between the business account and employee accounts when I pay wages.

My question is how I can make future unpaid salaries show up on the balance sheet as a liability.

Many thanks

Natalie

1. Support Staff 1 Posted by Admin on 06 Apr, 2013 08:02 PM

   

   Hi Natalie,

   I'm not sure I'd advise doing this, as strictly speaking the employee costs are not actually an expense or liability until they become due for payment and you pay them.

   Advice from an accountant is always a good idea, I think this will save you a lot of time and money in the long run.

   Mathew

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2. 2 Posted by Natalie Dow on 06 Apr, 2013 08:24 PM

   

   Okay thank you - I thought the unpaid (but committed) wages would show as a liability. I have a meeting with my accountant this week so can clarify.

   Thanks for your help,

   Natalie

   Sent from my iPhone

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3. Mark closed this discussion on 07 Apr, 2013 10:05 AM.