How to Set Up GST & HST Remittance Suppliers in Sage 50

How to Set Up GST & HST Remittance Suppliers

In this blog post, we’ll show you how to set up GST & HST remittance suppliers in Sage 50 so you can start collecting all of those taxes automatically. By doing this, you’ll be able to streamline your operations and keep more money in your pocket.

If you own a business, you will certainly agree that staying updated with the ever-changing tax regulations and filing taxes has become somewhat complex these days. However, if you have the Sage 50 Accounting software by your side, such complexities would be reduced to a large extent.

In this blog, we would address one query we received from many of our regular readers and users of Sage 50. They wanted to know about the procedure to set up the GST and HST remittance for suppliers in Sage 50. If you also want to know about it, we would request you to go through this blog till the very end.

Here we go!

Read More : 2021-2022 Tax Brackets and Federal Income Tax Rates

Procedure to Set up the GST and HST Remittance for Suppliers in Sage 50

Here some steps to setup the GST and HST Remittance for suppliers in Sage 50 :

A) Set up Tax Types

The first step is to set up the types of Sales Taxes ( GST and HST here) that you will charge to your customers. You will need to include these in both sales and expense transactions. Most businesses require to charge taxes as per eligibility and the place of supply rules as provisioned by the federal and provincial Governments. Therefore, make sure to complete all registrations in each jurisdiction and keep your tax numbers for ready reference, before setting up taxes.

You can see the tax types you want to set up on the more> Sales Tax>Sales Tax Settings page. You will need to select ‘I will not collect tax here for any unneeded tax types’ box. For the tax types, please enter your registration number and specify when your tax compliance reporting period deadlines are in the Tax Return Frequency field.

B) Set a Default ITC/ITR Percentage

GST/HST registered businesses can claim Input Tax Refunds (ITRs) or Input Tax Credits (ITCs) on tax returns. You need to set a default percentage for this on the Sales Tax Settings page. However, you can modify the recoverable amount as required, when creating transactions. Before completing the setup, you must specify the expense ledger accounts that include ITCs/ITRs in your Chart of Accounts.

C) Setting up Tax Installments

If you are GST/HST registered, you can submit your tax payments in installments to the CRA or Revenue Québec. For this, you need to set Accounting Start to monitor your installment payment totals in the concerned boxes on your tax return. Before setting up tax installments, you need to specify the ledger accounts to which you wish to post the payments. In case you do not have ledger accounts for installment payments yet, you will need to create them.

You can create them beforehand from the Chart of Accounts page or when you turn on the feature. However, creating them from the Chart of Accounts page will allow you to review the chart first for numbering. In case you need to make payments to both the CRA and Revenue Québec, you will have to create two accounts, one for each tax type.

D) Enter Installment Payments

You can choose from any of the three types of transactions mentioned below-to record your tax installment payments:

  • Journal Entry- You will need to create a journal entry if you wish to reflect the payment as a movement between two ledger accounts.
  • Other Payment – If you want to show that the payment was made from a bank account, you can create this type of transaction
  • Other Receipt – You can create an other Receipt if you receive a refund or credit from the CRA and want to add it to your bank account.

Please note that while entering a transaction, the tax installment accounts are not selected by default. You will need to select the proper tax installment account in the Ledger Account field. After you have made a correct selection, a confirmation message will appear next to the ledger account.

E) Review the Installment Total on Tax Returns

After the payments are posted to your tax installment ledger accounts, a cumulative total of all payments will be added to the corresponding box on your tax returns. The total increases as and when you post more payments. On a GST/HST return, the total is displayed in box 110.

To review the totals, follow the steps below-

  • Go to Reports
  • Click Tax Returns
  • Create a new GST/HST tax return 
  • You can also open an existing one and then navigate to the relevant box

F) Adjust the Installments Total

If you want to adjust the total of the installments, click on the total. The Installment Adjustment window will open up. In the Change Figure To field, enter the correct total. The difference between this particular amount and the Calculated Figure will be displayed to the right of the field. Type in a reason for this change and click to save the adjustment.

G) Include Taxes in the Transactions

While you create a sales transaction (invoice, credit note, and so on) the available GST/HST rates are based on the address of the contact/supplier. When creating an expense transaction, the tax rates depend on your business address. In some situations, you may use the rates applicable to the supplier’s/vendor’s location. For this, you should select the proper tax area in the Tax Rate For field at the top of the document. You will find this option for Other Receipts and Other Payments as well.

Also Read : 2022 Tax Deadlines

Final Words

We hope the steps mentioned above would help you set up the GST and HST remittance for suppliers in Sage 50. If you are experiencing any difficulties in carrying out the above-mentioned steps, we would recommend you to take help from some experienced Sage professionals.

Accounting Professionals & Specialized Experts

Want quick help from accounting software experts? Get in touch with our team members who can install, configure and configure your software for you. Proficient in fixing technical issues, they can help you quickly get back to work whenever you encounter an error in Sage software. Our team is available 24/7 365 days to assist you. To get in touch.

Frequently Asked Questions (FAQs)

How can I Download and Install the Sage 50 2022 Payroll Tax Updates manually?

To download and install the Sage 50 2022 Payroll Tax Updates Manually:
1. Navigate to Reports And Forms
2. Click Forms
3. Select Tax Forms
4. Open Payroll Tax Forms
5. Open the tax form of your choice
6. Now, you will be asked to install the tax updates
7. Click the tab named Download Updates
8. Once the download completes, click Run Update
9. The installation process of the latest Sage 50 2022 payroll tax forms will begin
10. You will receive a prompt asking you if you want to overwrite existing files. Click Yes to All to proceed further
11. Follow the instructions displayed on your screen and complete the installation

How does Sage 50 Calculate the AIA Limit?

You can calculate the total AIA by the guidelines provided by the HMRC. Normally, when you calculate AIA, you will come up with a figure of around 200,000. This sum can be calculated automatically by the Sage 50 application. The Sage 50 Corporation Tax Error 9288 would appear if later on, you entered a value greater than this amount on any tax form

What is the Sage 50 Corporation Tax Error 9288?

This error is primarily a validation error linked to the AIA (Annual Investment Allowance) Limit. If for some reason, you enter an AIA amount more than the amount set previously, the Sage 50 Corporation Tax Error 9288 occurs. Due to this error, the Corporation Tax is not recorded properly.

Related Posts

Further Reading