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.