If the enterprise does not participate in medical co-ordination (social security), the medical expenses reimbursed by individual employees can be included in employee welfare expenses and deducted before enterprise income tax according to regulations; In addition to paying medical insurance premiums, enterprises that have participated in medical co-ordination (social security) and reimbursed medical expenses to employees shall not be deducted before enterprise income tax.
An enterprise shall prepare entries according to the actual amount incurred:
Borrow: manufacturing expenses, management expenses, sales expenses, etc.
Loan: Payable employee salary-employee welfare fund.
Borrow: Payable employee salaries-employee welfare funds,
Loans: cash on hand, bank deposits.