Payroll Accounting/Billing Services

An alternative would be to credit a liability (e.g., Employee Withholdings for Insurance) for the $75 withheld from the employee. When the company pays the insurance bill of $300, it will debit the liability account for $75.

For many companies, the process of reconciling the monthly carrier invoice is not only time consuming, it’s a hassle. What many employers don’t realize is the failure to reconcile carrier invoices can directly impact the company’s bottom line and employee satisfaction. We can save you time, money and stress by overseeing this process.

Our qualified team members will review your monthly carrier invoice to ensure eligibility, effective dates and premium bills are accurate. We will also work to resolve all billing and enrollment issues identified during the process. This reduces the chance of overcharging and guarantees your employees have the coverage to which they are entitled.

  1. You pick carriers, we give the deduction report to the client
  2. Client submits to us the deduction report with a check
  3. Do billing for all carriers, direct check to them
  4. Discrepancy report back to the client – making the entire multi-carrier approach seem like a one-shot self-bill system to the client.
  5. As a third party administrator, we receive the bill from all carriers.

Let’s assume that the cost of an employee’s health insurance is $300 per pay period and that the employee is responsible for paying 25% of that cost through payroll withholding. One way to handle the withholding is to credit Health Insurance Expense for the $75 (25% of $300) withheld from the employee. The company will then debit Health Insurance Expense for the full insurance billing of $300. This will result in $225 being reported as the company’s health insurance expense for that pay period.

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