Insurance premium deducted from company bank account by ACH. Outside Payroll company deducting premium from employee payroll. Payroll posted with journal entries. How do I record transaction in Quickbooks?
You need to review your posted Journal Entry for your Payroll and see what account was used to deduct employee paid insurance. Is it Employee related Liability Balance Sheet Account? Or it is not clear, may be reduced to Payroll & Benefits Expense Account?
So whatever account used for deduction, same account should be debited.
Journal Entry will look like:
- Debit > Liability or Expense Account (used for deduction from payroll)
- Credit > Bank Account