Steve is an employee of Panache Inc.Panache pays a portion of his health insurance premium,and also contributes to a retirement plan in his name.The company's share of the health insurance premium is $600,and the company's contribution to the retirement plan is $780.The journal entry in the payroll cycle to record the employee benefits to be paid by the company should include a debit to Employee Health Insurance Payable for $1,380.

Question

Quizplus · Accepted Answer

The journal entry should include a debit to Employee Benefits Expense accounts, not Employee Health Insurance Payable, for the total amount of $1,380.

Steve Is an Employee of Panache Inc