Medical insurance premium for employee benefit

AS 874 views 2 replies

Guest

Hi,

Let say, a company takes a group medical insurance policy for all its staff and their family members. The policy period is from Jan' 20 to Dec' 20. The premium paid is 6 lac.

I wish to ask if any prepaid expenses should be recorded here?

IMO, I don't think that any asset should be recorded here because the benefit is not being accrued to the company.

What are your opinions? Please share.

Replies (2)

RAJA P M

"Do the Right Thing...!!!"

128147 Points Posted on 16 July 2020

Yes... The said Expense will be segregate awith Prepaid Expense...

The medical insurance premium for employee benefit refers to the cost that an employee pays to participate in their employer-provided health insurance plan. This premium is typically deducted from the employee's paycheck on a regular basis, such as monthly or weekly.

The specific amount of the premium can vary based on several factors, including the type of health insurance plan chosen, the level of coverage provided, the employee's age, location, and any additional dependents covered under the plan. In some cases, employers may contribute a portion of the premium cost, reducing the amount that the employee has to pay.

By paying employee health insurance premium, employees gain access to a range of healthcare services and benefits. These can include preventive care, doctor visits, hospital stays, prescriptttion medications, and specialized treatments, depending on the specific coverage provided by the plan.