QuickBooksForum.com.au

Version: Quickbooks Pro 09/10

Hello people,

I've been banging my head over setting up Workers Compensation so I can track it per job and also have the GST part working correctly but so far no luck.

I have set up a Company Contribution payroll item called WorkCoverSA with percentage based on gross wages (6.63374% includes 9% Super calculation).

The linked liability and expense accounts all work fine, and job costing is also working well, but where do I pick up the GST ?

I don't want to just pay WorkCover as a supplier as liability and job costing wont work.
What's your setup ?

Help !

-John

Hi John,
I had never thought of working out workcover this way, it seems pretty neat.
But I don't understand why you would be including the GST as part of your accruing for jobs.  The GST on workcover, would be claimable immediately when the invoice is processed, or when paid if you are not doing GST by accruals. 
Couldn't you still set up Workcover SA as a supplier and enter an invoice for the amount that was accrued, debiting the liability a/c for the amount accrued and credit Accounts Payable. It could be set up as a memorised transaction and all you would need to do is change the amount to the liability a/c calculated for that month, the GST would calculate on the total balance and then add it on, in order for you to pay the workcover amount plus the GST.

Perhaps I don't understand what you are after.

regards
Jean H

Jean is correct....

You only track the NET (ex GST) amount as attributable to a job. GST is a liability only and not an expense, so is not trackable (and you will screw up your liability payment/balance if you include it).

To pay the workers comp bill in total, you would pay the liability via the Payroll Liabilities function, then add the GST component.

To track the tax you need to include a tax code - don't simply pay the TAX (GST) PAYABLE account (best practice so it reports correctly for BAS), I would pay the liability via a SUSPENSE BANK ACCOUNT (everyone should have one of these set up), then create a CHEQUE from your nominated account, paying the SUSPENSE ACCOUNT back (under expense tab in the cheque) but add the applicable tax code.

eg. If your payroll liability for WC was $1,000....

Pay SUSPENSE $1,000, add NCG code, therefore GROSS payment = $1,000 + $100 = $1,100 and your account liability balance for that period is now (or should be) ZERO.

Of course you will need to adjust the balance of WC payable at the end of your WC period less refunds/plus additions.


Hope that helps/makes sense...

Jason
www.quickbooksolutions.com.au