Wage Expense

Filed Under »
Dictionary Says

Definition of 'Wage Expense'

In financial accounting, wage expense represents payments made to non-manufacturing employees, regardless of whether they are hourly or salaried. Depending on the presentation, this line item may also include payroll tax expenses and other benefits paid to employees. Wage expense is recorded as a line item in the expense portion of the income statement.  
Investopedia Says

Investopedia explains 'Wage Expense'

Under the accrual method of accounting, wage expenses are recorded based on when the work was performed. By contrast, under the cash method of accounting, wage expenses are recorded at the time cash is paid to employees.

Salaries and wages paid to manufacturing employees are not recorded as wage expense. Instead, they are allocated as part of the cost of the goods manufactured. Initially, the wages and salaries are included in inventory line on the balance sheet. Once inventory is sold, the allocated costs become part of the cost of goods sold (COGS) line item on the income statement.  
Search results for

'Wage Expense'

  • Small Business Tax Obligations: Payroll Taxes

    http://www.investopedia.com/articles/taxes/08/business-payroll-tax.asp
    ... be nontaxable, employees must verify them through receipts or expense reports. ... that
    employers can use to calculate withholding amounts: the wage bracket tables ...

  • Unions: Do They Help Or Hurt Workers?

    http://www.investopedia.com/articles/economics/09/unions-workers.asp
    ... The Phillips Curve.) Increases in union wages can come at the expense of non ... While
    unions did force wage rates upward compared to non-union members, this did ...

  • Is That Airline Ready For Lift-Off?

    http://www.investopedia.com/articles/stocks/07/airline_stocks.asp
    ... EBITDA / Interest Expense = coverage $10 million / $5 million = 2x coverage. ... union)
    employee demands for sizeable increases in health and/or wage contributions. ...

  • How Education And Training Affect The Economy

    http://www.investopedia.com/articles/economics/09/education-training-advantages.asp
    ... Will the worker see a wage increase that would warrant the cost of the program ... Some
    employers pay for all or a portion of the expense of a program, but this is ...

  • Dollar-Cost Averaging Pays

    http://www.investopedia.com/articles/mutualfund/05/071305.asp
    ... In comparison, the structure of the mutual fund expense ratio makes the investment ...
    All this enables low-wage earners and folks with tight budgets to invest $10 ...

  • Marriage: For Richer Or Poorer?

    http://www.investopedia.com/articles/pf/08/richer-or-poorer.asp
    ... single greatest expenditure most people will ever make, is usually the next expense
    on the ... April of 2007, which can be up to 10-times a newlywed's yearly wage. ...

  • Uncle Sam's Surprise: Unexpected Sources Of Taxable Income

    http://www.investopedia.com/articles/tax/09/owe-nothing-federal-tax-return.asp
    ... tax regulations as your salary - it may be considered a supplemental wage, in which ...
    to boost your value in the job market at your employer's expense in Tuition ...

  • Stay Motivated To Get Out Of Debt - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0910/Stay-Motivated-To-Get-Out-Of-Debt.aspx
    ... the gadget costs $1,600 before taxes, divide it by your gross hourly wage and it ...
    be if all of your wages could go toward a non-essential expense.(Knowing why ...

  • Budgeting Basics - Budget Bootcamp | Investopedia

    http://www.investopedia.com/university/budgeting/basics3.asp
    ... Know Your After-Tax Monthly Income Everyone knows his/her hourly wage or monthly
    salary ... to save because you'll think of it as a necessary "expense" rather than ...

  • Economic Indicators: Employee Cost Index (ECI) | Investopedia

    http://www.investopedia.com/university/releases/eci.asp
    ... dividing cost of goods sold (COGS) by selling, general & administrative expense
    (SG&A) on ... benefit of the methodology used in the ECI is that wage changes that ...

Related Articles

Partner Links