what are wages Payable? Wages payable refer to money owed to employees for work done up to date, on which compensation has not been made. Wages payable accrue at the end of an accounting month where the company has incurred payroll expenses but has not yet paid cash wages for employees. Wages payable is always entered in the form of an adjusting journal entry and is shown in the balance sheet as a current liability. It ensures that the financial statements reflect the actual costs and liabilities involved in employee work of the period.
