Deduct GST or HST from Employee Benefits

To deduct the GST or HST from employee benefits:

1. Add a liability account (an account in the 2000s) called GST/HST Payroll Deductions.
2. In the Home window, from the Setup menu, select Settings, open Payroll, Names, and then Income and Deductions. In the Deductions list, change the name of one of the deductions to GST/Benefits or HST/Benefits.
3. In the Home window, from the Setup menu, select Settings, open Payroll, and then Deductions.
4. In the Deductions dialog, find the GST/Benefits or HST/Benefits option, and then ensure that the Deduct After Tax box is checked. Leave the remaining boxes as marked unless you need to make a change to one of the deductions.
5. Click OK.
6. From the Setup menu, select Settings, open Payroll, Linked Accounts, and then Deductions.
7. In the GST/Benefits or HST/Benefits box, select the GST or HST Payroll Deductions account.
8. When you issue a paycheque, enter the taxable benefit in the Benefits box.
9. In the GST/Benefits or HST/Benefits box, enter the amount of GST or HST the employee must pay.

When you process the paycheque, the GST or HST the employee owes the government is recorded in the payroll deductions account.

Published: June 19, 2017
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