Amounts withheld from employees' wages for health insurance are credited to a liability account.

Name: Amounts withheld from employees' wages for health insurance are credited to a liability account.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

This is because the amounts withheld are funds that the employer is holding on behalf of the employee to pay for their health insurance premiums. Therefore, they represent a liability the employer owes to the employees until the funds are paid to the insurance provider.

Amounts Withheld from Employees' Wages for Health Insurance Are Credited