Accounting for Section 125 Cefeteria plans (US)

[Tim Wunder]

My company will be instituting a Section 125 Cafeteria plan (flexible spending 
account) for medical expenses. Starting January 1, 2006, my flexible spending 
account will have $1000 available to it. Each payday (weekly), a specific 
amount of money (1000/<53 or 52>) will be deducted from my pay pre-tax and be 
designated for the flexible spending account. So, at the start I will only 
have a small amount actually deducted from my income assigned to the flex 
account, the full $1000 will be available for me to use for medical expenses.

How should I configure gnucash (1.8.11) to account for this?
I'm thinking I should at least set up an asset account for the $1000. That's 
the easy part. The hard part (for me) is determining what account that $1000 
comes from, and what account the weekly deductions should be updating.

My current thinking is that I should set up an Income account, Income:Flex 
from which a transfer of $1000 will be made to credit the Income:Flex account 
and debit the Assets:Flex account on January 1 (when the money will become 
available for use). Each week I'll add a split to my payday transaction that 
currently credits Income:Salary the amount of the specific pre-tax payroll 
deduction as a debit to Income:Flex the amount (along with other debits to 
Assets:Checking, Expenses:Tax, etc...).

Is that right?
Seems like it to me, but I'd like to throw it out there so (perhaps) someone 
who might actually know how it's s'posed to be done.

Thanks, 
Tim
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