We have a service (Alice) that modifies the payroll information for commuting and health care FSA. When a commuting reimbursement is processed it creates both a reimbursement and deduction. I believe it does this because the money comes out of the employee's paycheck, and comes back in to the same paycheck as a tax-free reimbursement.
The problem is that the reimbursement is accounted as an expense (properly), but the deduction creates a new liability. What do I match that liability to? I can't map it to an expense, because the expense is already accounted for. The only thing I have come up with is Reconciliation, is that the correct thing to do?
