Salaries are what you pay to your employees as they have done their work. There are companies who pay in advance for the job performed in the next period, but as those are rare, we are not focusing on those occasions right now. 

So, saying now that you have people working for you and they have performed their schedules, you would account for their monthly wage. Presuming the salaries are indeed monthly (that is the wage is agreed within the employment contract as a monthly wage), this calculation is fairly simple. However, if other measurements are used, this just means that to reach an expense and a liability, you need to carry out more work. To put that aside now, let us presume you’ve reached a figure to put into your accounts (10,000 in our example). For the sake of the example we’re also going to ignore taxes as they differ from countries. Let it just be said that all taxes you as the company need to pay from the salaries you are paying, you must ensure you declare and pay them properly. Your monthly accounting entry for recognizing payables to employees would be as follows:

Obviously your employees would also expect that you pay out what you’re owing to them so hence you also need to reflect a following entry (from the bank account you’re paying out the salaries):

It’s important to also keep in mind that the expense for the salary charge should always be accounted within the period the work this expense relates to was carried out.