ISTech Support Forum

ISTech Support Forum
http://www.istechforum.com/YaBB.pl
Evo-ERP and DBA Classic >> Payroll >> Insurance deductions
http://www.istechforum.com/YaBB.pl?num=1051797758

Message started by Sandy_Fougerousse on 05/01/03 at 08:02:37

Title: Insurance deductions
Post by Sandy_Fougerousse on 05/01/03 at 08:02:37

I am trying to resolve our insurance deduction expense/insurance payables issue. We are using 2002.3.

We have the weekly employee portion posting to our medical insurance payable account and the employer portion going to the medical insurance expense account.

Some of the employees pay for 25% of their premium and the company pays the remaining 75%. We also have the owners who do not pay anything; company pays all.

How do I set up the payroll and transfer the deducted portions, plus account for the company paid portion (75%) or the 100% of the premium for the owners.

We are billed monthly for 1/12 of the total premium plus payment dues/fees.

Thank you for your help in this matter.

Sandy Fougerousse

Title: Re: Insurance deductions
Post by Lynn_Pantic on 05/01/03 at 19:15:14

One way to handle it is to post the employee contribution to the Insurance Expense account as a credit and then zero it out when you go to transfer in PR-H so nothing transfers to AP and the net credit stays in the expense account. Then pay the insurance bill in full through AP and the net insurance expense will be correct because the credit balance from the withholding will offset the total bill posted as a debit against the expense account.

Title: Re: Insurance deductions
Post by Lenette on 08/17/05 at 12:51:36

Lynn,

I tried to implement this method... but I think I missed the point. Reviewing the A/P Agings...confirmed my error. So, before I make any additional changes, please confirm the following instructions:

In PR-A, User-defined deductions should only reflect the employee's portion AND the employer's portion would be ZERO.
The appropriate expenses account s/b used.
In PR-H do not transfer liability for said deduction.

Title: Re: Insurance deductions
Post by Lynn Pantic on 08/23/05 at 07:00:02

Yes, you are correct. Then the payroll processing will credit the expense account which would offset the debit made when you enter the voucher in AP to pay the insurance provider.

Periodically (maybe at year end) you can use PR-M and edit the deduction to zero out the outstanding amount.

Title: Re: Insurance deductions
Post by Lenette on 08/23/05 at 07:07:22

Lynn, Thank you for the reply. This process has resolved many problems for us. ;D