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.
- Create a new tax exclusive manual journal.
- Reverse the amount earned for the period.
- Reverse the GST reimbursement coded to the suspense account.
- Re-enter the amount earned to include GST
- Make sure the totals balance and post the journal.