Vacation Benefits Payable
Definition: Accrued liability for vacation pay that employees have earned but not yet taken. As employees earn vacation time, the employer debits Vacation Bene…
Account #2190
TypeLiability
Normal Bal.Credit
FS LineBS
Sub-LedgerPayroll
NotesAccrued liability for vacation pay that employees have earned but not yet taken. As employees earn vacation time, the employer debits Vacation Benefits Expense and credits Vacation Benefits Payable. When vacation is used, the liability is debited and Cash is credited.
Related Subjects
Related
- Vacation Benefits ExpenseThe expense side of vacation accrual
- Vacation CompensationThe compensation concept