Difference Between Insurance Liability Account and Insurance Expense Account (Company Share)

Clarification of company’s social insurance accounts and how to distinguish between the company’s obligations and its share in social insurance.

Answer:

In social insurance, there are two types of accounts related to the company’s share:

1. Current Liability Account (Liabilities):
   This account contains the amount of the company’s obligation to the social insurance authority, and includes the insurance amount borne by the company in addition to the employee’s share.

2. Social Insurance Expense Account:
   This account shows only the amount borne by the company from the specified rate in social insurance, excluding the employee’s share.