Skip to main content
K
KimKN
March 19, 2021
Question

payroll liabilies for medical

  • March 19, 2021
  • 1 reply
  • 0 views

I have just taken over a new position and I'm not exactly sure how to account for the payroll liabilities for things like medical/dental etc.ONLY because the actual bill/premium is paid BEFORE the deduction is actually taken from the employees check??  I understand that part is expensed to the company and part to the payroll liability for the deducted employee portion, however I'm not sure exactly how to do this since the liability amount hasn't been deducted yet??  HELP

1 reply

V
Victoria19
May 19, 2021

Record the insurance expense and the repayment from the employee to the same chart of account. You can set up the deduction from the employees' pay to whatever account you like. Or you can create a separate account to track the ins and outs of the employee portion paid and paid back to verify that it zeros out.

Terms & ConditionsAccessibility statement