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fredwards
May 16, 2022
Question

Why HST appears on bank clearing for payroll cheques

  • May 16, 2022
  • 2 replies
  • 0 views
Why do my employee payroll cheques shw HST when matching in bank?

2 replies

LeithG
LeithG
May 16, 2022

Hi Fred

 

When you issue payroll, there is a service charge from your provider (whether QBO or WagePoint); that fee has HST associated with it.  For example, the monthly fee for QBO is $20 + $4 per employee.  Say you were running 10 employees that'd be 20 + (4x10) = $60, and will incur HST (say you're in Ontario where it's 13%) at $7.30.

 

Hope this helps!

Leith

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fredwardsAuthor
May 16, 2022

Thanks Leith,

I'm a bit confused. When we are billed monthly for QBO subscription, payroll, service fees etc. is that not where the HST is added?

Why does each employee's pay cheque (in the bank register or match) display HST as a tax instead of "Exempt" or "Non taxable" because that expense has no HST added and subsequently does not qualify as an ITC? 

A
Alex M
May 16, 2022

Hi there fredwards,

 

It's vital that all your transactions are entered properly so that your books can be well balanced. QuickBooks Online is a great tool able to help you run payroll so that your employees can be paid for their hours worked. I can point you in the right direction for assistance with paycheques.

 

In order to know why these transactions appear with taxes, I recommend reaching out to the QuickBooks Online support team outside of the Community. They'll be able to view your account with you in a secure environment in order to view your payroll settings as well as the transactions themselves to make sure all transactions have the correct amounts. You can reach out to them using the following methods:

 

Schedule a Callback or start a Chat: click (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.
Social Media: Facebook and Twitter

If you have any other questions, feel free to reach out here.

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Bmlivakk
January 23, 2023

I have the same question. Wondering if you got an answer to update on why these transactions show HST

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