Question

The current liability for Wages Payable (or Accrued Payroll) represents the:

1. employer's federal and state payroll tax obligation.
2. net pay earned by employees for which they have not yet been paid.
3. employer's liability for various withholdings that taken out of the gross pay earned by employees.
4. gross pay earned by employees for which they have not yet been paid.

Answer 1

2.

Step-by-step explanation:

The current liability for Wages Payable (or Accrued Payroll) represents the net pay earned by employees for which they have not yet been paid. This amount is entered into the company's balance sheet as a entry that is being adjusted and is then changed at the end of the month as a current liability that the company needs to pay.