Hello
re: FSA balance accumulated in the liability account - question pertaining to the balance at end of year at the end of the year:
During the year entries :
Credit when deduction from employee paycheck
Debit when a claim is paid
FSA being a use it or loose it, what happens at the end of the year if there is a balance in the liability account?
Is that being taken in income?
Reason I am asking is because we implemented H S A and even though we still have the F S A , all employees elected to contribute to the H S A so this account should be zero.
Thank you
re: FSA balance accumulated in the liability account - question pertaining to the balance at end of year at the end of the year:
During the year entries :
Credit when deduction from employee paycheck
Debit when a claim is paid
FSA being a use it or loose it, what happens at the end of the year if there is a balance in the liability account?
Is that being taken in income?
Reason I am asking is because we implemented H S A and even though we still have the F S A , all employees elected to contribute to the H S A so this account should be zero.
Thank you