## Short-term Employee Benefits – Salary, Wages & Bonus
Short-term employee benefits are payable within 12 months from the end of the period in which service is rendered.
### Salary & Wages
If paid in the same period:
```
Dr Salary Expense ×××
Cr Cash / Bank ×××
```
If accrued but not yet paid (outstanding at year-end):
```
Dr Salary Expense ×××
Cr Salary Payable ×××
```
When paid in the next period:
```
Dr Salary Payable ×××
Cr Cash / Bank ×××
```
### Bonus
Bonus accrues in the year earned (when profit/target is achieved), regardless of when it is paid.
| Situation | Treatment |
|---|---|
| Bonus earned in Y1, paid in Y2 | Accrue in Y1; pay in Y2 |
| Profit-sharing / target-linked | Accrue when profit or target is achieved |
Accrual entry (Y1):
```
Dr Bonus Expense ×××
Cr Bonus Payable ×××
```
Payment entry (Y2):
```
Dr Bonus Payable ×××
Cr Cash / Bank ×××
```