How to account for the medical insurance premium paid for employees. Company is actually paying the entire amount of premium & then getting the amount payable (50%) from the employees. Company wants to deduct this amount from the employees? So, what is the accounting treatment.
It should be like this:
Mediclaim Premium A/c Dr. (50% amount)
Employee A/c Dr. (50% amount)
To Bank/Cash (total amt. paid by company)
[Instead of debiting employee a/c you can also debit Salary o/s or salary payable accounting according to the accounting policies followed by the company]
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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