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

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    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 SingletonJilly Singleton Member Posts: 6

    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.

  • Acctd4Acctd4 Accredited Partner Posts: 1,389 ✭✭✭
    edited September 9

    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 😁

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • Acctd4Acctd4 Accredited Partner Posts: 1,389 ✭✭✭
    edited September 9

    (@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!)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • Jilly SingletonJilly Singleton Member Posts: 6
  • Jilly SingletonJilly Singleton Member Posts: 6
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