Accrued Compensation
Also called Accrued Payroll · Accrued Salaries · Accrued Wages
Accrued Compensation is a Balance Sheet item that refers to employee costs that a company owes to its employees but has not paid yet.
Some examples:
Wages earned but not yet paid (pay periods ending after the balance sheet recording date)
Unpaid performance bonuses
Unused vacation days
Unused sick days
Earned but not paid sales commissions
Why Accrued Compensation matters in investment banking interviews
A specific flavor of accrued expenses that's worth recognizing by name, especially at year end when bonus accruals can be large enough to swing working capital meaningfully.