GST/HST and payroll deductions
Lesson 3 of 4 in Canadian Tax Fundamentals for IEPs · 22 minutes
Two transactional taxes IEP accountants must master: GST/HST (sales tax) and payroll source deductions. Both are operationally complex; both heavily tested.
What you'll learn
- Apply GST/HST rules to common transactions
- Calculate input tax credits
- Process payroll source deductions
- Recognize the federal vs provincial split
From the lesson
GST/HST and payroll are the two taxes that almost every Canadian business deals with directly. They're operational — not just annual filings. They get heavy weight on the CPA Reciprocity Exam because mistakes cost businesses real money and CRA penalties.
1. GST/HST — the federal-provincial sales tax
GST (Goods and Services Tax): Federal sales tax. 5% on most goods and services across Canada.
HST (Harmonized Sales Tax): A combined federal and provincial sales tax in some provinces: • Ontario: 13% (5% GST + 8% provincial). • New Brunswick: 15%. • Newfoundland: 15%. • Nova Scotia: 14% (since April 1, 2025). • PEI: 15%.
PST (Provincial Sales Tax): Some provinces have a separate provincial sales…