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Question
Hi- I have to create an asset account for the forfeiture account- I think it should be a debit account so we use it to pay expenses for the pension plan...!!!
can you explain me the process that i should follow to allocate this expenses properly !!
I have my forfeiture amounts posted directly into my payable account. The payable account is a credit account the forfeiture is posted as a debit. When the forfeiture is used it is posted as a credit to offset the debit.
21165 is 401K payable
80900 is 401K Employer expense
So the forfeiture is a debit to the 21165 and a credit to the 80900. When the forfeiture is used to pay administrative costs it is than a creidit to 21165 and a debit to 80900.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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