What is Net Payroll Payable?

Net payroll payable is the cash amount of compensation payable to employees as of a reporting date. “Net” is used in the term because this is the residual amount of compensation left after all taxes and voluntary deductions have been removed from the gross amount payable to employees. In some cases, the net amount payable may be greatly reduced from the gross payroll amount, especially when the wages of certain employees are being garnished, perhaps for child support or debt repayments.