We just started with HSA accounts. Prior to this we did not have them available in our health plan. My boss set up the HSA as an other current liability account. I believe the entry needs to look like this, but could use a second opinion:
Credit to cash for the amount deducted for the employer contribution
Debit to the Liability for the same amount
Debit to the Liability for the employee paid portion
What I need to understand is where would the opposing debit go? Is this typically put to payroll tax/ fringe benefits/respective employee labor accounts if there is not a specific HSA account designated for the labor categories?
