Offset benefit liabilities in your accounting software

Because Gusto does not take any money for benefits or deductions, we include a mapping for a benefit or deduction expense and a benefit or deduction liability. This will create accounts within your accounting software that accrue an amount owed for the benefit or deduction over time.

When the benefit or deduction is then paid to the requesting party, you can offset your liability account and zero out the accrued amount owed.

Important: When money is pulled for an FSA or commuter benefit, before it is deducted through payroll make sure you don't create an expense but rather establish a receivable. It will be expensed in payroll when the amount is deducted. At that point with the deduction, then reduce the receivable.

Click on your accounting software below to learn more.

Reconciling Benefits through Quickbooks Online

Option 1: Create an entry from the bank debit (created by paying the benefit or deduction) and assign that entry to the liability account to offset. 

  1. Sign in to your Quickbooks Online Account.
  2. Go to Banking and select the applicable bank account.
  3. Select on the bank debit created from paying the benefit or deduction.
  4. In the middle field, select the liability account from the drop-down menu.
  5. Click Add.

Option 2:Create a bill and associate the bill with the liability account.

  1. Sign in to your Quickbooks Online Account.
  2. Go to the + in the upper right-hand corner and select Bill under Vendors.
  3. Manually enter or select the liability account from the drop-down menu under Accounts.
  4. Finishing creating the bill.
  5. Click Save.

Reconciling Benefits through Quickbooks Desktop

Option 1: Create an entry from the bank debit (created by paying the benefit or deduction) and assign that entry to the liability account to offset.

  1. Sign in to your Quickbooks Desktop Account.
  2. Go to Banking and select your Bank Feed.
  3. Locate the debit from your benefits provider.
  4. Click the box to the left-hand side of the debit.
  5. Select the liability account from the drop-down menu under Account.
  6. Click Batch Actions - Add.

Option 2: Create a check and associate that check with the liability account to offset.

  1. Sign in to your Quickbooks Desktop Account.
  2. From Banking, select Write Checks.
  3. Manually enter the payment information, and select the liability account from the drop-down menu under Account.
  4. Finishing creating the bill.
  5. Click Save.

Reconciling Benefits through Xero

Option 1: Create an entry from the bank debit (created by paying the benefit or deduction) and assigned that entry to the liability account to offset.

  1. Sign in to your Xero Account.
  2. Go to Accounts > Bank Accounts and open up Reconcile.
  3. Locate the debit that corresponds with the payment of your benefit or deduction
  4. Click Create from the right-hand column next to the debit.
  5. Enter in the details, selecting the liability account under What.
  6. Click Add Details to submit the entry.

Option 2: Create a Bill or Invoice and associate that item with the liability account.

  1. Sign in to your Xero Account.
  2. Go to the + in the upper right-hand corner and select Bill or Invoice under New.
  3. Manually enter or select the liability account from the drop-down menu under Accounts.
  4. Finishing creating the Bill or Invoice.
  5. Click Save or Approve.

Reconciling Benefits through Freshbooks

Freshbooks does not support liabilities. Please handle your benefit expenses directly in Freshbooks.

 

 

 

 

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