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A
aerolim
October 23, 2021
Question

Revenue splitting for subcontractor RMT (adjusting for HST)

  • October 23, 2021
  • 1 reply
  • 0 views

Hello,

 

I recently started a registered massage clinic and hire number of subcontractors at the clinic (revenue is split based on %).  

 

Assuming we get $100 (incl. HST) for a massage session, the clinic takes $30 and RMT subcontractor will take $70 (RMT subcontractor will have their own HST account).

 

How should i record this on quickbooks online properly? (esp to ensure I keep the right amount of HST).  Thank you.

 

 

1 reply

T
Trish_T
October 25, 2021

Hi aerolim,

 

Congratulations on your new Massage Clinic!  It's great to see you reaching out to Community for advice with recording taxable transactions that are split between you and your subcontractors.  In QuickBooks Online, you'd need to record the sale as well as the contractor payment.  I'd recommend reaching out to your accountant for the best course of action to ensure your sales tax filings are in accordance with the CRA guidelines and your accounts are balanced.  If you don't currently have an accountant we can help you find one here.

 

If you have any additional questions or concerns, please reach back out.  We'd be happy to help!

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