What is the proper way to document salaried owed to an employee to be paid at a later date.?

Answer 1

If you are talking about record keeping for your company, current liabilities are expenses that you will pay in one years time. In contrast Long term liabilities are expenses such as loan payments or mortgages etc, that you will pay over a length of time exceeding one year. But I would label it Salary expense. for intance if you hired someone and agreed to pay them 22,000 a year I would credit my salary expense account 22,000 then monthly or however often you pay, allocate 2,000 dollars to salaries paid, in turn reducing your salary expense 2,000 per month and debit cash the 2,000 per month, which accounts for your statement of cash flows. and at the end of the year you should have a 0 balance in your salary expense, to be re allocated at the beginning of your next accounting cycle, either the same 22,000 or more if you are nice enough to give that dude a raise.

hope this is helpful, If not, at least I didn't put you down with ignorant answers.

Answer 2

How about corporate America pays its employees on time? Your CEO isn't waiting for his check, to be sure! Bastards!

Answer 3

A contract signed by all parties.