How do I enter a GST only payment to our salary sacrifice provider?

Jilly Singleton

The bulk of the cheque written is payroll but a small portion is GST charged to the company which we claim back so not cost to the company to provide a salary sacrifice benefit to our employees.

I currently write a check for just the GST amount as the gross and the tax. This gets pickup in our BAS but not in a tax summary report. is there anyway to enter this transaction so it shows up in both places so we don't have to do a manual cross check?

Kris_Williams

Isn’t the GST an additional charge on top of the fee, you wouldn’t just pay GST

if it is what I envisage the cheque would be

gross 1000

tax 200-

expense a/c. 50. NCG. 5.00

total cheque 855

this would now appear on a tax summary report. But I have a feeling this is not what you are after

it might also need to be

expense. 50. NCG. 5.00

expense. -50. no tax code

Jilly Singleton

Thanks for your response Kris. The GST relates to an item that is processed via a payroll liability and entered as a liability cheque.

I had read another article that suggested putting a negative but another response said that was not accepted practice but I couldn't follow the suggestion as it related to foreign trade. Hence why I have asked this question specifically.

Acctd4

To create a GST only component, you need to enter it as 2 lines (posting to an expense or COGS account) on the Expenses tab.

UPDATED: The first line needs to use NCG to create the GST component. The 2nd line needs to be the same (net) value but as a negative with the NCF tax code eg

$ 1,000 (Net) NCG $ 100 (GST)

-$ 1,000 (Net) NCF

This removes the net figure but retains the GST amount 😁

Acctd4

(@Jilly Singleton Apologies … have updated my example above as the NCF tax code will actually be needed in order to remove the net amount specifically from tax reports!)

Jilly Singleton

https://community.reckon.com/discussion/comment/20624129#Comment_20624129

Thanks Shaz, I will give this a go today. 🤞

Jilly Singleton

https://community.reckon.com/discussion/comment/20624138#Comment_20624138

Thanks So much Shaz for your help. It worked!!