A liability is a debt, obligation or responsibility by an individual or company. Current liabilities are debts that are due within 12 months or the yearly portion of a long term debt.

Current Liabilities for Companies

  • Accounts payable – This is money owed to suppliers.
  • Accrued expenses – These are monies due to a third party but not yet payable; for example, wages payable.
  • Accrued Interest – This includes all interest that has accrued since last paid.
  • Bank account overdrafts – These are short term advances made by the bank for overdrafts.
  • Bank loans or notes payable -This is the current principal portion of along-term note.
  • Current maturities of long-term debt – This is the part of a long term debt that is due in the upcoming 12 months.
  • Customer deposits or unearned revenue – These are payments given by customers as an advance for future work that is expected to be completed by the end of the next 12 months.
  • Dividends payable – These are the dividents declared by the company Board of Directors that have not yet been paid to the shareholders.
  • Income taxes payable – These are taxes owed to the government that have not yet been paid.
  • Interest payable – This is interest owed to lenders that has not been paid.
  • Notes payable (other than bank notes) – This is the current principal portion of long-term notes.
  • Payroll taxes payable – This is taxes withheld from employees or taxes related to employee compensation.
  • Rental payments – These are paid for renting buildings, land, pastures, or other property or structures.
  • Short-term notes payable – These loans are due upon demand or within the next year.
  • Sales taxes payable – These are taxes collected from customers for the government that need to be paid to the government.
  • Wages – These are owed to employees.

Payroll Current Liabilities

  • Accrued salaries and wages payable
  • Employee U.S. Federal income tax withheld
  • Employee state income tax withheld
  • Employee local income tax withheld
  • Employee FICA withheld
  • Employee Medicare withheld
  • Employee garnishments withheld
  • Employee benefits including employee insurance deduction withheld and 401 K or IRA deductions withheld
  • Employer provided benefits
  • Employer FICA contribution payable
  • Employer Medicare contribution payable
  • Employer Federal unemployment payable
  • Employer state unemployment payable
  • Employer Workmen’s Compensation insurance payable
  • Employer provided health insurance payable
  • Employer provided life insurance payable
  • Employer provided 401 K contributions payable
  • Employer provided IRA contributions payable

Accrued and Estimated Liabilities

  • Accrued real estate and property taxes payable
  • Accrued income and franchise taxes payable
  • Accrued Federal taxes payable
  • Accrued state taxes payable
  • Accrued local taxes payable

Personal Current Liabilities

  • Car loans
  • Credit card debt
  • Current monthly bills – rent, utilities, insurance, etc
  • Home equity loan
  • Home mortgages
  • Lines of credit
  • Loans for investment purposes
  • Miscellaneous debts – hospital charges for example
  • Personal loans
  • Rental or other property mortgage
  • Student loans
  • Unpaid Income Tax
  • Unpaid Taxes and Interest

These different examples of current liabilities for companies and for individuals show the breadth of liability which could be the obligation of a company or individual.

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