USA FSA year end journal entry

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We have a balance in our FSA liability account and our FSA plan allows participants to rollover $500 into the next plan year so no grace period applies. When taking into account the carryover, would any left over balance in the account be considered a gain on the books? Each pay period we have the following entry which are the only entries currently being made in the FSA account:

Employee Deduction:

DR: Payroll Wages
CR: FSA liability

Disbursement made:

DR: FSA Liability
CR: Cash
 
Joined
May 27, 2022
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I have some questions about FSA

  1. Each employee enroll $1000 ( an excample) deducted 12 monthly averagely $1000/12m=$83.33 per monthCompany contribute $300 /person/ year
  2. 2Employees can remburse in advance and employer would pay to 3rd vendor who manages FSA account and remburse the bills Then collect back from employee paychecks
  3. 3 Each year $500 rollover to next year.

How can I do the journal entry for 2-3 ?
 

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