Reallocate GST for a contractor paid through payroll

If you pay your contractors through payroll and they're registered for GST, you will need to create a manual journal to account for the GST payable.

Set up a reimbursement pay item for the GST and code it to the suspense account or another clearing account. You can't post an amount directly to GST through payroll.
  1. Create a new tax exclusive manual journal.
  2. Reverse the amount earned for the period.
  3. Reverse the GST reimbursement coded to the suspense account.
  4. Re-enter the amount earned to include GST
  5. Make sure the totals balance and post the journal.

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