My company just started offering Health FSA to its employees. Our FSA plan is monitored by a payroll service provider. I need help with the accounting journal entries. I understand that the first thing I need to do is to set up a FSA asset account and its corresponding liability account. FSA asset account is to monitor the reimbursement paid to the employees whereas the contribution from the employees will reduce the liabilities account. Well, I know the theory but I couldn't comprehend how to achieve all these with journal entries. Any expert advise is very much appreciated.
Thank you!
Thank you!