Wages Payable Permanent Or Temporary Account

Is Wages Outstanding / Accrued Wages A Permanent Account Or A Temporary Account?

Wages Payable is a Permanent Account as it is a Current Liability which is a Balance Sheet Account and shown on the balance sheet.

Wages payable is not a temporary account as it is not closed to Income Summary Account at the end of the accounting period.

Wages Payable has life less than one year. Usually, wages are paid to workers on daily basis. However, a company may pay wages to workers upon the completion of the project, so it is payable by the business to workers untill the work is finished.

So, we can say that wages payable / outstanding wages / wages owing is a permanent account and not a temporary account as it is not closed at the end of the accounting period being a current liability of the business.