Good morning. Looking for some information related to FSA Journal entries. Currently the company has a third party vendor managing FSA. Payment from individual employees is directly paid from the outside payroll company to the FSA vendor. As a company we do not record any transactions on our books. Is this correct?
|If a company uses a third party vendor to manage FSA and prefunds the entire year on behalf of the employees as a cushion, how is this recorded on the company's books? The employee will continue to have payroll deductions and payment will be sent to the third party vendor.|