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?
- EvaLv 71 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.