Reallocate GST for a contractor paid through payroll

If you pay your contractors through payroll and they are 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 cannot post an amount directly to GST through payroll.

Set up pay items

  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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