Under the accrual method of accounting, this account reports the employer’s portion of the health insurance cost incurred by the company during the period indicated in the heading of the income statement, whether or not the company has paid/remitted the insurance premiums within this time period. Since this account involves the delivery function of the business, the health insurance expense should be reported in the operating expense section of the company’s income statement.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,644 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
