Accrued liability

Accrued liabilities – Eng. Accrued Liability , an accounting term for expenses that are incurred in a business but have not yet been paid. The company can accrue liabilities for many items, such as the payment of personal pensions to employees, which will be paid to pensioners in the future. Accrued liabilities can be recorded in the balance sheet both short-term and long-term.

Payroll taxes are another example of accrued liabilities. The employer is responsible for making social security payments, health insurance payments, and transfers to the unemployment insurance fund. The employer accumulates this money until the date when the money must be transferred to the relevant state authorities. Until these payments are made, they are accrued liabilities. Thus, accrued liabilities do not always mean late payment.

 

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