USA Life Ins Payable Account

[kong1802]

Hello!

This may be too basic and I apologize for my ignorance in advance, but I am knew to payroll liabilities.

Our life Insurance Payable account has gotten out of balance. We debit the account for the invoice totals for the life insurance. Then, if I'm understanding, we should credit the account with the employee withholdings for life insurance. The step I seem to be missing is the employer portion. Should we credit the account with the employer amount? If so, what will the debit be? See our account below.

Thanks!

 

[AGH the CPA]

what account do you credit for the invoice totals?

 

[kong1802]

We currently process and pay the invoice on the same day. We debit this payable account and credit cash the full amount of the invoice.

Then we credit this payable account with the employee deductoins withheld for life insurance. One entry that is missing is the employer cost, which should be credited to the life ins payable account then debited to expense. I've found that the deductions are wrong (don't match invoiced amounts). Ideally when this is fixed, these credits with the employer credit should balance the account out.

I just started cleaning this up, its a mess.

However, is this an acceptable method for entering these?