Entrepreneurship & Small Business

Accounting for gov't advisory committee payment?

  • Last Updated:
  • Jun 23rd, 2018 10:39 am
Deal Addict
Dec 12, 2009
2877 posts

Accounting for gov't advisory committee payment?

I recently started a contract position to sit on an advisory committee a couple of times a year for the fed government as an "expert". One of the requirements is maintaining my credentials in my field (license). They pay a per diem plus expenses using their invoice form. I'm not sure how to run this through my books, or if the amounts should actually be included in my books. I'm thinking it should because they called it a supply contract with invoice rather than an honorarium. There are essentially 3 components that I'm not sure how to properly account for.

Per Diem: This seems pretty straight forward with the exception of HST. Their form had no mention of HST. I'm thinking this should be entered as revenue earned with the HST as either exempt or zero rated. But which?

Travel/hotels: They paid based on exact amount including taxes based on receipts provided. Does the HST get entered as Input Tax Credits (ITC's) and HST charged?

Meals: They paid meals at preset amounts for breakfast, lunch and dinner. Which was higher than my actual expense. They brought in 2 lunches where the committee members just gave cash with no receipts. How am I supposed to account for these? What about the HST? Consider the meal allowance as HST included and enter the values like for travel above?