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Robin Whitaker
Non-Cash Fringe Benefit

What would be the account to be credited for a NON-Cash fringe benefit?

MIP Fund Accounting asks for a LIABILTY ACCOUNT but if we use a liability account it will never be zeroed out since we don't pay out anything for it.  I was thinking maybe a clearing account expense type (but then that would mean we would have an increase to an expense and a decrease to another expense account).

 

Melinda Carson
Non-Cash Fringe Benefit

Are these fringe benefits taxable to employees?

Robin Whitaker
Yes, they are taxable.  The

Yes, they are taxable.  The taxes I know are credited to the appropriate liablity accounts; its' just the remaining net amount that we're not sure about.

 

Melinda Carson
fringe benefits

Employee Benefits?

 

Robin Whitaker
Yes, they are non cash fringe

Yes, they are non cash fringe benefits that increase the taxable income to employees.  

kwilliam
Non-Cash Fringe Benefit

Robin,
We ran into this issue when we set up the code for the Excess Group Term Life calculation.  This is taxable benefit that also shows up in box 12 on the W2.  Instead of using an expense account, we just used the same liability account.  This way, the liability account is zeroed out every time payroll runs.
Kurt

Robin Whitaker
I could see this working too.

I could see this working too.  I was thinking of debiting the fringe expense account and setting up a clearing expense account or just using the same expense account.

Thanks!