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utilitree
Feb 17, 2023 4:43 PM UTC
Question

Health and Dental Ins.

I set up Health and dental as a payroll liab. but should it be an expense account?  I'm assuming it should be.  Health/dental are taxable and employees are deducted for part of cost each pay period.

1 reply

droybal
Mar 26, 2025 9:36 PM UTC

Health and dental deducted from an employee's paycheck is a liability.  When you write a check or pay your insurance company it clears that liability.

 

  Health and dental paid by the company will be both a liability(until it is paid) and an expense.  In the set up of the payroll item,  it should have walked you through it

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