Wages payable is the amount of money which a firm is owing its employees in respect of services already rendered by them but for which they have not been compensated. This liability generally is found on the balance sheet and is defined as wages, salaries, or other compensation that has still not been paid at the date of the report. For instance, if the employees are paid on a biweekly basis and the financial period closes before that, amount due to the employees is accrued as wages payable. It affirms the correctness in acknowledging expenditure by synchronizing them with the periods they were made. Visit us: https://accountingbyte.com/what-are-wages-payable/

Phantom tax refers to a tax liability that arises from income a person has not actually received in cash or benefits. For example, in partnerships or real estate investments, an individual may be taxed on their share of profits, even if those profits are reinvested and not distributed. This "phantom income" can lead to unexpected tax obligations, as individuals must pay taxes on income they never physically received. Proper tax planning and understanding financial statements can help manage these situations effectively.