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Accounting, Payroll & Pension Issues/proper accounting fro reimbursements of health plan costs from employees
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Question
what is the proper accounting for reimbursements received from employees for health plan expense. is it revenue or a reduction (offset) to the employee health plan expense account?
Technically I believe the proper method is to show the reimbursements as income. Assuming you are not required to issue audited financial statements, the short cut of showing the reimbursement as an offset against the expense is normal procedure.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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