401(k) payable definition
/What is 401(k) Payable?
401(k) payable is a general ledger account that contains the amount of 401(k) plan pension payments that an employer has an obligation to remit to a pension plan administrator.
Presentation of 401(k) Payable
The 401(k) payable account is classified as a current liability, since the amount owed should be paid within one year. This account may be aggregated into the “other liabilities” line item in an organization’s balance sheet. It is rarely large enough to warrant a separate line item in the balance sheet.