Accrued Payroll Law and Legal Definition

Accrued Payroll is a liability arising from employees salary expense that has been incurred but not paid. It would be wages, salaries, commissions, bonuses, and the related payroll taxes and benefits that have been earned by a company’s employees, but have not yet been paid or recorded in the company’s accounts. For example, the accrued payroll as of December 31 would include all of the wages that the hourly-paid employees have earned as of December 31, but will not be paid until the following pay day.