About the increased PST rate for Saskatchewan:

What is happening? 
Effective March 23, 2016, the PST rate for Saskatchewan will increase from 5% to 6%.

How does this affect my Sales Tax Tracking in QuickBooks Online? 
There are some necessary steps you will need to take to correctly track, report and pay PST in Saskatchewan. Detailed instructions  on how to make these changes to your QuickBooks Online account are included below. 

Important: See more about Saskatchewan's Department of Finance to learn more.

Changing the PST rate in QuickBooks Online 
These instructions will guide you through the steps to add the new PST rate: 

Important : The following is applicable both for existing company files created before March 23, 2017, and also new company files created after March 23, 2017 in QuickBooks Online
  1. Click Tax on the left menu and select Sales Tax.
  2. In the Sales Tax Center, click on Add Tax.
  3. From the new window, select the Tax rate.
  4. Enter the Tax Name (eg. PST Saskatchewan 6%).
  5. Under the Tax Agency drop down select Saskatchewan Finance.
  6. Click the check box beside both Sales and Purchases (as the tax will apply for both Sales and Purchases).
  7. Enter 6 as the Tax rate applied for Sales transactions.
  8. Under the Account drop down select Liability.
  9. In the Show tax amount on return line drop box, select Tax Collected.
  10. In the Show net amount on return line drop box, select Not Applicable (N/A) option.
  11. Similarly for Purchase transactions, enter the tax rate as 6.
  12. Under the Account drop down select Expense.
  13. Click Done.
This will generate the new tax rate under the Saskatchewan Finance. You can see the details of this new rate by clicking the  Rates and Settings link under this Tax Agency in the Sales Tax Center.

In addition to this, you can also set up a Group rate in QuickBooks Online. This option will let you combine any existing tax codes into a “combo rate”. The most common use of this option is to set up the  “Meals and Entertainment” Tax for GST/HST.

To create group tax rates that incorporate the new PST rate, you will do as follows:

  1. Click Tax on the left menu and select Sales Tax.
  2. In the Sales Tax Center, click on Add Tax.
  3. From the new window, select the Group rate.
  4. Enter the Group Name (eg. GST/PST Sask 11% Sales).
  5. Under the Tax Rate drop down select PST Saskatchewan 6% Sales.
  6. Under Applicable on select Net amount.
  7. Under the next Tax Rate drop down select GST
  8. Under Applicable on select Net amount.
  9. Save
Then, create a group for purchases: 
  1. Click Tax on the left menu and select Sales Tax.
  2. In the Sales Tax Center, click on Add Tax.
  3. From the new window, select the Group rate.
  4. Enter the Group Name (eg. GST/PST Sask 11% Purchases).
  5. Under the Tax Rate drop down select PST Saskatchewan 6% Purchases.
  6. Under Applicable on select Net amount.
  7. Under the next Tax Rate drop down select GST (ITC)
  8. Under Applicable on select Net amount.
  9. Save

Now, when you create an invoice, sales receipt, bill or expense, you can select the 'PST/GST Sask 11% Sales' group rate or 'PST/GST Sask 11% Purchases' group rate.

Click here for more information on managing a sales tax rate change

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