Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 1 month ago

Correct way to record the journal entry for medical insurance payable account?

I know the employee health insurance deductions is goes on the liability side and the expense side is the medical insurance invoice. Now, do I need to make a JE for the difference of what the employer pays to net the account to 0? Is this correct way?

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  • Eva
    Lv 7
    1 month ago

    The employee health insurance deduction should be posted as a minus to the expense.  The GJ entry would be debit to Employee HI deduction and credit to Employee medical insurance expense.  I don't post the employee deduction to a payable account.  I post it directly against the insurance expense account.

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