Wages payable and wages expense vary in terms of timing as well as classification. Wages expense is defined as the total amount of employees’ salary that they received in a particular period whether they have rendered service or not. It is accounted for on the income statement as an expenditure. On the other hand, wages payable is that part of the wages which remain unpaid at the end of a specific reporting period. That is recorded in the balance sheet as a current liability. It maintains financial accuracy and compliance with standards to facilitate the determination of the company’s financial performance.
