330 – Pension Funds Payable

Current Liabilities

Accrued Liabilities

Synopsis

Account 330

Debits

Credits

  1. Payments made to Pension Fund accounts, previous accrued for.

  1. Employer's contribution to an employee pension fund.

  2. Employees' contribution to an employee pension fund.

  3. Any adjustment to increase the account balance to actual liability.

 

Remarks:

The balance in this account represents the retailer's liability for pension and retirement funds accumulated to date, and payable in a future accounting period.

Pension/retirement plans usually establish a fixed percentage of employee's total gross wages as a minimum requirement for the employer's contributions.  Regardless of the method established, quarterly and annual adjustments are usually required to bring the total employer contribution into agreement with the requirements of the trust fund.

Legal and accounting advice should be obtained on all questions relating to pension and retirement plans.

Note: