How to record HST payment in QuickBooks via Quick Method…?
Quick Method is considered easier for the small businesses to calculate the total tax transferred to CRA for GST/HST objective. This method comprises of 15% GST charges and 13% HST charges on all the goods and services that are taxable. The total amount that is to me transferred to CRA is decided by increasing the applicable rate of the taxable supplies including GST and HST. The transferable rate depends on the aspects below:
- If the taxpayer is in the business of service sector, retail or manufacturing
- The zone where the business has permanent establishment
- The region where the supplies are made or services accorded
Track HST on selected expenses (expenses that come under ITC under the Quick Method) for e.g. Capital expenditure. According to CRA the operating expenses for maximum expenditures, the HST paid is just part of the expense.
- Manually calculate your HST (Total sales + Collected HST) x Applicable Rate (Reduce 1% on the first $30,000) in the Quick method.
- Calculate the discount by deduct the manual calculation from the total amount collected).
- Mention the discount for adjusting the sales tax using the sales tax item for the adjustment of HST on total sales.
- For adjusting sales tax account use miscellaneous income as it is responsible to income tax. The HST paid on the expenditures is a part of the deductible expenses of your business.
Quick method is ideally not that quick as it involves procedure that really take time. In case you have any problem reports it to Quickbooksprofessionals.com. If there is a lot urgency then you can even get instant help by giving a call at Quickbooks proadvisor support number and talk to the real person. Thus wait no longer and get all the support you need, now…!