[polis]

I reconcile my bank account at the end of the month and yet, I have already deducted from the employees, their share of their health care premium for which my bank statement will show an auto payment which I do not post until I reconcile at the end of the month.

Therefore, when I make the pay cheque up, my doctors will be wages expense dr, income tax expense dr, health care premium dr and bank cr. At the end of the month, I will reconcile the bank autopayment as bank cr and health care expense dr. Doesn't that overstate my health care expense? Don't I need to get the employees share of health care premium in a cr column somewhere to negate the excess health care expense? Any chance of getting an answer along with a following list of doctors and crs to visualize with?

[Just Looking]

If I understand you correctly, you deduct health insurance (or a portion of it) from your employees' paychecks. Let's use an example of an employee A who gets the following (simplified to show just the accounts you mention):

Gross Pay...................$500
Income Tax................($ 75)
Health care premium....($ 50)
Net Pay......................$375

Just posting the above check only, you would have:

Wages Expense.............500
Income Tax Payable.................75
Health Care Payable.................50
Cash....................................375

If you pay a portion of the health care costs, let's assume 50%, the entry would be:

Health Care Expense.........50
Healh Care Payable...........50
Cash....................................100