Productivity

Does your Employee Expense System have the right GST/HST/QST Responsibility Allocation Method?

An easy way to boost productivity within your organization when it comes to employee expenses is to use an efficient employee expense software.

A major task of an employee expense software for expenses incurred in Canada is to manage significant net recoverable GST, HST and QST, see our simulation page on this topic.

If this task is not properly done, opportunities may be lost, tax assessments including penalties and interest may result.

You may incur unplanned consultants fees and unplanned time spent on these audits will remove your employees from working on productive tasks.

So amongst the traditional employee expense system, which is the best one to manage your tax assets?

  • Spreadsheets or templates

    They do not store information in a central database which impairs efficiencies, management and creates Accounts Payable integration issues with manual posting.

  • Complex tax rules

    As the complexities of tax rules increase, so does the list of tax codes employees are expected to select from. Since employee expenses are filled out by most employees in an organization, not just accountants, there can be errors in selecting the proper tax codes, which end up in tax assessments and missed opportunities.

  • Employees are not accountants

    A direct posting to tax accounts by all employees encounters the same issues as the above; an expectation that non-accountants understand and manage complex tax rules which leads to numerous errors.

These systems have limitations in managing GST, HST and QST rules for businesses and public service bodies.

The Advataxes Approach

  • Advataxes was designed to reorganize the tax responsibility allocation as per recent additional tax complexities such as: 5 different tax zones in Canada, Recapture of Input Tax Credits in Ontario and Prince Edward Island, ITC and the abolition of the 5% QST factor.

  • You will also be able to upload a digital copy of your invoice, as this is the proper document requested by tax authorities, whether you use the factor method or the exact method.

  • When filling out an expense (excluding expenses related to airfare), your employees will simply select the transaction date, the jurisdiction and the expense type, which will trigger the tax rule based on your organization's profile.

  • With its accounting capabilities, Advataxes addresses issues of accounting integration, delegation, foreign currency conversion and a whole lot more.