Record GST or HST on Employee Benefits as a Payroll Expense

To record the GST on employee benefits as an additional payroll expense:

1. Add a liability account called GST/HST Payroll Deductions, numbered from 2000 to 2999.
2. Add an expense account called GST/Benefits, numbered from 5000 to 5999.
3. In the General Journal window, record the GST expense by debiting the GST/Benefits account and crediting the GST/HST Payroll Deductions account.

Note: You can record when you calculate the total taxable benefits given to employees for a previous calendar year. Alternatively, you could record this transaction each pay period.

When you pay an employee, enter the taxable benefit net of the GST/HST in the Benefits box.