USA Life Ins Payable Account


Joined
Mar 29, 2018
Messages
2
Reaction score
1
Country
United States
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!

Capture.PNG
 
Ad

Advertisements

Ad

Advertisements

Joined
Mar 29, 2018
Messages
2
Reaction score
1
Country
United States
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?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Deductible Life Ins Premiums 1
accounts payable 3
Accounts Payable 0
Term Life Insurance 22
Accounts Payable 0
Accounts Payable 3
Accounts Payable 1
USA Account payable 1

Top