How do I enter a GST only payment to our salary sacrifice provider?
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?
Answers
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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
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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.
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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 😁
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(@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!)
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Thanks Shaz, I will give this a go today. 🤞
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Thanks So much Shaz for your help. It worked!!
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