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Community Explorer **

Employer Medical Contribution

Hello,

 

My company just began offering a Medical, Dental, and Vision health insurance plan. We pay 75% for the employee as a benefit and the employee pays the remainder 25%. Each payroll (bi-weekly payroll) half of their 25% comes out of their paycheck, and then at the end of the month we pay the health insurance the total 100%.  How would you suggest to structure the chart of accounts to show this liability?

 

Thanks

Solved
Best answer 11-30-2018

Accepted Solutions
Established Community Backer ***

Re: Employer Medical Contribution

I suggest that you simply post the employee deduction to the same expense account used for the medical expense premiums.  Then post the gross bill from the insurance co to the same account.  You will then end up with employer net cost. 

 

For greater detail create a sub account of group insurance expense for employee contributions.

5 Comments
Established Community Backer ***

Re: Employer Medical Contribution

I suggest that you simply post the employee deduction to the same expense account used for the medical expense premiums.  Then post the gross bill from the insurance co to the same account.  You will then end up with employer net cost. 

 

For greater detail create a sub account of group insurance expense for employee contributions.

Not applicable

Re: Employer Medical Contribution

I understand the explanation for setting up the employee deduction to go to the expense account and the gross bill, however where do you have the employer contribution payroll item mapped to?

Not applicable

Re: Employer Medical Contribution

I would like an explanation as well for employer contribution.

Senior Explorer *

Re: Employer Medical Contribution

still no answer????

Highlighted
Established Community Backer ***

Re: Employer Medical Contribution

I'm not in the US so probably not the same tax treament for benefits.
IF there is a taxable benefit for the employer-paid amount (check!) that is a non-cash item that should be applied in payroll - but it has no effect on company expenses

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