On 11/15/2019 6:05 AM, Christopher Lam wrote:
It's a regular asset account.
On Fri, 15 Nov 2019, 11:17 gn00b, <[email protected]> wrote:
First of all, this is not as much a gnucash question as an accounting
question and we are not properly qualified to answer accounting
questions << I know that I am not >> With that understanding.....
<< before>> This is just ONE example of an employee benefit that affects
your tax liability. What is misleading you is that in this case you ARE
getting some money while in other common cases you aren't getting
anything "in hand". For example, employers are allowed to give employees
a benefit of paying term life insurance premiums up to a year for
coverage up to a year's salary tax free up to 50,000 BUT if more than
one year or more than 50,000 coverage that benefit is taxable to to
employee.
#2 Income
#3 ignore -- you already entered it when you took it (the $350) Your pay
stub is simply indicating the same $350 as if they had doled it out to
you that much at a time instead of all at once. I am correct about this?
At the time you asked for/got the $350 there was nothing on the pay stub
about it?
Michael D Novack
PS --- your confusion/question is essentially about an accrual to cash
basis adjustment. They are treating the $350 amount as accruing at the
rate of $13.46 per pay check.
My employer gives employees $350 under a wellness spending account to spend
on whatever we want. I claim it on public transit fares. This $350 is
considered a taxable benefit and every bi-weekly paycheck, $13.46 gets
added
to gross income. What would be the credit side of transaction number 2 and
the debit side of transaction number 3?
1. Spend $350 loading up my public transit fare card.
Dr Prepaid Public Transit 350
Cr. Bank 350
2. Claim $350 on this account and then it directly deposits this into my
bank account.
Dr. Bank 350
* Cr. What is this account? 350*
3. Every paycheck, $13.46 is counted as income on my paystub
Dr. Bank (Net Pay) 1300
Dr. Income Tax Withholding 700
*Dr. What is this account? 13.46*
Cr. Gross Income 2000
Cr. Taxable Benefit Income 13.46
--
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There is no possibility of social justice on a dead planet except the equality
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