Question 1

What are the types of Accrued payroll?

Accepted Answer

The types of accrued payroll and specifically the components of accrued payroll are wages and salaries, paid overtime, bonuses, commissions and other benefits that the company has offered its employees.

Question 2

When should a company pay off accrued payroll?

Accepted Answer

A company must pay off accrued payroll by the date that it has intimated the employees it will. This date must be communicated in advance by the payroll team and by the management. Any delay in settling the accrued payroll can lead to lawsuits and additional liability.

Question 3

What is the difference between accrued payroll and accrued expenses?

Accepted Answer

Accrued payroll is a combination of the wages, paid overtime, and other benefits that are due to employees in the company, whereas accrued expenses are the expenses, including travel and other costs to the company accrued over time. Both are liabilities.

Question 4

Who manages accrued payroll?

Accepted Answer

Accrued payroll is managed by the payroll team and it is shared and closely monitored by the finance team, which maintains the balance sheets of the company. Generally accrued payroll will be managed by the payroll manager itself but there could be another person dedicated to it at times.

Question 5

Is accrued payroll a liability?

Accepted Answer

Yes, accrued payroll is a liability and the company must pay it off as early as possible. If the company is facing any financial difficulties which are making this difficult, then this must be communicated to the employees concerned as early as possible.

Blogs

What is Accrued Payroll? Components and Calculations

What Is Performance Management? The Complete Guide for 2025

How Will Semiconductors Power Next-Gen AI?

What are the International Staffing Approaches that Work for your Business?

What Is a Contingent Workforce: Importance and Examples?

AI and Healthcare: Match made in Heaven?

What Is Talent Sourcing: Definition, Process and Benefits

How to Streamline Payroll Management in HR in 2025?

Labour Law Compliance Checklist for 2025