Accrued payroll is a current liability comprised of four sections. The first is the amount of payroll earned by staff and not yet processed or paid. The second is the dollar value of personal time off accumulated for each employee aggregated into one number. The third consists of payroll taxes owed to the respective governmental authorities and the final section comprises the accumulated benefits payable such as health insurance, retirement contributions, and amounts owed to third parties as deductions from the gross payroll.
Another required estimate needed in accounting relates to employee benefits. Employee benefits consist of vacation, sick time, retirement benefits, healthcare and other de minimis benefits. As a function of accrual accounting these benefits are estimated […]