We have about 250 Companies setup in Lawson. Regarding Health Insurance, we are self-insured. We currently, internally, create a monthly health invoice outside of the Lawson system that sends health premium invoices/billing statements to each of the 250 companies. Each company invoice details participant/employee name, coverage plan/tier, applicable monthly premium per participant, and grand total monthly health insurance invoice amount to be charged to the company.
This invoice is used to create the journal entries to record Health Insurance Expense and the movement of cash (to pay the bills). It is also used to create the journal entries needed to record revenue for our Employee Benefits Company. Because of paperwork delays, many adjustments are needed and drag out this invoice process.
We are looking at the automated process of having the journal entries created by Payroll post to the General Ledger and discontinue the creating of the Health Insurance Invoice outside of Lawson. We think this will work, but we run into a problem when an employee that is set up with a health insurance deduction does not receive a paycheck from which to process the deduction (i.e. Unpaid FMLA/Leave of Absence). We know that we can have the health insurance deduction go into arrears until the employee resumes getting a paycheck; which works ok, however nothing gets posted to the General Ledger for the deduction arrears until a paycheck is issued at some point in the future. We need an entry posted to the GL for the total health insurance expense and cash movement even if there is no paycheck/health insurance deduction processed for the employee. How do other customers handle this using the entries created by Payroll to the GL?
