on 07-28-2010 9:22 PM
Hi,
We are in the process implementing the T&E solution for canada.
My question is on canada taxes since in US, there is no tax recovery for all reimbursable expenses.
So my question, how it is calculation and what will be reimbursable amount for the traveller.
In US, i spend 100$ for a hotel stay in georgia, I get 100$ back.
In CANADA, based on high level discussion, taxes will be applied for certain expenses. So I am asking if a business traveller spends 100$ for a hotel stay in Ontario, will the traveller get 100$ back? Definetly I know taxes will be applied. My question, what is the reimbursable amount the traveller will get!! Some high level idea on tax calcuation for canada will give me a good idea.
Thanks Salman,
You are right. Employee will get 100% reimbursed. But when we post in GL, we have to calculate taxes from expense amount and post as a separate entity say for example non recoverable taxes.
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Hi Deepan,
I second Salman's reply.
The traveller should receive $100 in your instance. Let me give an example.
Hotel Expenses = $100
Taxes = $10
Total Amount Paid = $110
In this case, the traveller should be reimbursed by $110. But when he enters in the expense claim he should enter only $100. The tax amount should be calculated automatically and posted in the system to the credit of employee.
Trust this helps.
Regards,
Raj
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Hi Deepan,
The employee should be reimbursed $100 however, part of this will post to the expense g/l account (depending on the tax rate) and the tax amount will be posted to the account for tax. Hope this helps.
Sal
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