my hst is not calculating properly. example $100 expense that is inclusive of HST is only calculating 13% of $88.50 = 11.50

The Community is thrilled to welcome you as one of our newest members, cathy. I'd like to share detailed information about Harmonized Sales Tax (HST) calculations with you.

The HST calculations are correct, as QuickBooks follows a specific calculation method. Since you have an inclusive tax, the HST rate is already added to the total amount. To help you understand this better, I'll provide a detailed explanation and outline the formula that QuickBooks uses to handle inclusive tax calculations. 

To calculate the HST portion for a $100 expense that includes HST at 13%, follow these steps:

1. Total amount (inclusive of HST): 100
2. HST rate: 13%
3. Formula to find the HST amount:
   • HST = Total amount/(1+HST rate)*HST rate
   • HST = $100/1.13*0.13 = $11.50

Check out this image for visual reference. 

Finally, I'll share some helpful articles that explain how to manage your sales taxes in QuickBooks Online. These resources will give you detailed information and practical tips to make sure you handle all your sales tax tasks correctly:

• Manage sales tax payments in QuickBooks Online
• Check how much sales tax you owe in QuickBooks Online
• File your sales tax return and record sales tax payments in QuickBooks Online

Our Community team is here to provide comprehensive support for your sales tax management queries. Click the Reply button, and we'll guide you with detailed, personalized assistance.