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Salaries that are payable means how much the company owes its workers in terms of salary due to them because they have already worked but not received the payment yet. Such liability is normally of a short term nature and is kept in the balance sheet of the company in its current liabilities. It helps it abide by the accrual accounting principle due to which there is no obligation to recognize an expense immediately when the expense is paid but rather when the expense is incurred. Salaries payable have to be recorded so that a true and fair view of the financial health and the payroll commitments of any time of accounting period can be given by the accounting record of the businesses.

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