How to Record Employee Wellness Costs
Accounting for allowable employee welfare and wellness program expenses under FAR 31.205-13.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Allowable Employee Welfare Expense | Debit | 1,500.00 | - |
| Accounts Payable | Credit | - | 1,500.00 |
💡 Accountant's Note
FAR 31.205-13 allows costs for wellness programs and employee health when they are reasonable and improve morale or productivity. These are typically included in an indirect pool like Fringe or G&A.
Practitioner & Systems Framework
💻 ERP Architecture
Ensure these costs are coded to a specific 'Allowable' sub-account in the Fringe benefit pool.
⚠️ Audit Flags
Excessive costs or programs that appear to be entertainment rather than wellness.
📄 Required Documentation
Program description, receipts, and evidence of employee participation.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
Defense, Aerospace & Government Contracting
Cost-Plus-Fixed-Fee (CPFF) Contract — Revenue Recognition as Costs Are Incurred
Defense, Aerospace & Government Contracting
Firm Fixed-Price (FFP) Contract — Cost-to-Cost Percentage of Completion Revenue
Defense, Aerospace & Government Contracting
Time & Materials (T&M) Contract — Revenue at Contractual Labor Rates Plus Material Cost
Discussion & Community Questions
Loading comments...