GST / HST setup for Provinces

This tutorial walks through how to set up sales tax (HST, PST and GST) for different provinces in Canada.

Lets get started.

First we need to create an account in the Chart of Accounts to track the HST and GST charged on Sales.

go to Chart of Accounts and click on File – Create.

I created account number 2390 and called it HST charged on Sales. I already have GST charged on sales account. Make sure the Type is a Subgroup Account is ticked so it lands in the same area as other GST accounts. because when you get a report all the GST and HST on Sales will be in the same area.

Click Save and Close once your done.

GST Chart of account


Now from the home screen drop down the Setup menu – Settings – Company  and Sales Tax.

Settings GST HST


Once Sales Tax is chosen click on Taxes and add the new HST Charged on Sales account you just created and click OK.

Settings Taxes


the system puts you back to the home screen. once again go back to Setup – Settings – Company – sales Tax and this time choose Tax Codes. List all the provinces that you sell to.

GST Provinces

Now you need to give each province its own tax rate by clicking on each code and going deeper into the program.

Tax Code Details


the rest of the provinces can be set up the same with their own providential tax rate.

Hope this helped.

let me know if you have any other questions. Sorry for the delay in replying. I was helping our daughter and her kids this summer. But I am back at my desk.

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Posted by Nooshin - August 24, 2020 at 9:57 am

Categories: 17- GST, HST Reports & Remittance, 19- Setup & Settings   Tags:

Link Accounts & Integration P3


This is part 3 of Linked Accounts & Integration.  continuation of P1 and p2

Link Account & Integration P1.


Linked Accounts & Integration P2

Lets get started. Click on Payroll. there are 10 sub categories that will be covered.

Note: keep in mind depending on the version of Sage some of these categories might not appear.





Next: Income

The shaded area can not be changed. There is regular, Overtime1 for 1.5% of regular wages and Overtime2 for 2 time the regular wages.

Income 4,5,6 etc can be changed to any other income categories such as piece work or one time severance pay or Xmas pay.

Going across the Colum each income category is checked off with the appropriate tax deductions.


Next: Deductions

Enter all the appropriate deductions you may have. These will be set up on payroll and come off each pay period. Let the system know if any of the deductions are subject to government taxes.

payrolldeductionsNext: Taxes

Use this section to calculate Employer portion of payroll tax remittance.

payrolltaxesNext: Other Expenses

this section is self explanatory. Enter other expenses that you need to take off employees paycheque weather is amount or percentage.

Next: Entitlement

Employees sick, special, or any other day they may have can be tracked here.

Next: Payroll Remittance

For each remittance select the vendor receiving payment.


Next: Job Categories

To add or change job categories fill in the information.

Next: Manulife

This is a extended health company for medical, RSP, or pension setup.

Next: Names – 2 sub categories.

1 – Income & Deductions

The blue section can not be changed. Income & Deductions 1 – 20 can be changed to your company’s preference.

2 – Additional payroll

this is additional info and title section can be utilized for your own wording and definitions.

Next: Linked account – 5 sub categories.

Income, Deductions, Taxes, User-defined Expenses and Expense Groups

Next: Income

from top – Insert the bank that payroll will be coming out of. Account to keep track of vacation owed and account to track payroll advance.

the wages account number is issued to all wage categories except Salary has its own account number.

payrollLAincomeNext: Deduction

Enter all the payroll deductions account to balances every time payroll is processed.

These account should be reviewed each month and the balances remitted to government and other institutions.


Next: Taxes

Every time payroll is processed the deductions will be held in these account. both the employee and employer portion so you don’t have to do extra calculations to capture 1.4% for EI and 2x CPP. Its already done for you.


Next: User-Defined Expenses

When payroll is ran these accounts are used to process the payable section as well as the expense portion of the entry. The ones your company does not utilize can be left blank.


This concludes the Payroll setup and all the linked accounts to run payroll smoothly.

if you have any specific questions please drop me a note.

Hope this was helpful.






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Posted by Nooshin - October 29, 2019 at 9:11 am

Categories: 10- Employees, 11- Pay Cheques, 12- Payroll Cheque Run   Tags:

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