SK tax in Loft47 - How to deal with List side deals

SK tax in Loft47 - How to deal with List side deals

On List side deals in Saskatchewan the Listing brokerage is responsible for collecting the full amount of sales tax 11% which is made up of 6% PST and 5% GST.  

To enable this to happen in Loft47 the following steps must be taken 

IN LOFT

1. UPDATE COMMISSIONS PAGE
Enter the commissions under the flat rate $ field not as a % - you will have to manually calculate 11% on the Gross and add it to the tax override field as shown below -



2. ENTER ALLOCATIONS TAX OVERRIDE -
You will need to override the tax allocation to the agent to the total of the tax on the sell (buyers side) commission as shown below 



3. ENTER OTHER INCOME PAYMENT TO YOUR "SK PROVINCIAL TAX" PROFILE -
You should create a profile in your people called "SK Provincial Tax" and then enter an other income amount for the amount difference between the total gross tax and buyers side tax as shown below -



HOW THIS LOOKS IN YOUR ACCOUNT SOFTWARE

Since the 5% GST is setup in your Loft/Xero settings, your GST reporting will be handled via the GST reporting function in Xero. 

However, for PST tracking and remittance, you will the bills already created for you under your BUSINESS>BILLS TO PAY menu.  You just need to search the AWAITING PAYMENT tab for the contact name SK PROVINCIAL TAX and at your month's end, filter the date range for the month.


Then click the 'ref' checkbox to select all

 and then click the 'Make Payment' button and choose your method of payment


To track the balance, head to CONTACT>ALL CONTACTS and search for SK Provincial Sales Tax and in the results, you will see the balance you owe.  


To view the bill report, click the contact SK Provincial Sales Tax to open up the bill/payment details and click the 'View recent bills report' link


Within the report you can either filter to view a date range you want or leave the default filters and view for all time.  Here you can see the bill list and what you've paid

and any overdue bills

and the ability to export the report to excel, pdf, or googlesheets




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