My company is offering a benefit to reduce employee's medical deduction from their pay if they get an annual physical. Our thoughts were to set up the code as a negative pre-tax deduction. Does that sound right?
Not quite sure how your system works or how the deduction is determined - I think I would keep it simple rather that deducting, say $50 from pretax gross pay, then turning around and doing a negative pretax deduction (addition to pretax gross pay) of say $5. Why not simply reduce the pretax deduction to $45? I'm assuming annual physical triggers reduction for entire year. The result should be the same. I guess the question is whether you need a contra-account (negative pretax deduction) to track how much of the insurance cost is transferred from the employees to the employer due to the benefit.