Guide To Reconcile Sales Tax Updated September 2014 Contact Information: Controller’s Office General Accounting Area Tel: 305-284-6148

Objectives of This Presentation Inform users about the Florida sales tax calculation Discuss the steps involved to submit the monthly sales tax reconciliation to the Controller’s Office Review exempt sales and corrections Follow instructions on preparing e-mail to be sent to the Controller’s Office and keeping backup documentation in the departments

Sales tax topics Florida Sales Tax Rates Calculating Sales Tax Sales Tax Brackets Sales tax topics

Florida Sales Tax Rates The sales tax rate for Miami-Dade county is currently 7%. This rate is comprised of two components – the State “base rate” of 6%, and Miami-Dade county’s “surtax rate” of 1%. See the link below for surtax rates by county as well a detailed explanation of surtaxes and their applicability. Go to http://dor.myflorida.com/dor/forms/index.html#discretionary to get to the Florida Department of Revenue Discretionary Sales Surtax section Download Form Number DR-15DSS which takes you to information for the current calendar year Note that UM out of state sales are tax exempt

Sales Tax Calculation In a situation where the sales tax is included in the price, please follow this example to isolate sales tax from revenue: Sale: $10.00 (Tax included) $10.00 / 1.07 = $9.35 (Gross Sales Amount) $10.00-$9.35= $0.65 (Sales Tax Amount) For additional instructions on how to calculate sales tax (using bracket system), visit the Florida Department of Revenue’s How to Pay Estimated Sales and Use Tax tutorial: http://dor.myflorida.com/dor/training/estimated_tax/ie7/index.html?dhtmlActivation=inplace

7% Sales Tax Brackets Amount of Sale Tax .10 - .14 .01 .15 - .28 .02 Here is the link to Florida Department of Revenue Sales Tax Brackets for 7% taxable transactions http://formupack.com/pdf-Forms/SalesUseTax/FL-Florida/SalesUseTaxFL_dr2c_20110113.pdf If you go to the link shown above, the table on the right will appear in the first section Here’s an example of how you may use this as reference How much sales tax should you collect on a gross taxable sale of $297.53? $297.00 x 7% = 20.79 The tax on the .53 cents is .04 Total tax to collect is 20.79 + .04 = $ 20.83 Amount of Sale Tax .10 - .14 .01 .15 - .28 .02 .29 - .42 .03 .43 - .57 .04 .58 - .71 .05 .72 - .85 .06 .86 - 1.09 .07

The steps to submit the monthly sales tax reconciliation Review DMAS Screens Sales Tax Payable - Control Code 2151 Sales Tax Spreadsheet Balancing and Corrections The steps to submit the monthly sales tax reconciliation

Step #1 – Utilizing DMAS Transactions by Month Screen Go to DMAS and select your Subsidiary Ledger (SL) Account (######) and Revenue Sub-code. View transactions by month - select the month you are currently working on See sample of this DMAS screen on next slide Print the DMAS screen since it is to be forwarded as backup to the Controller’s Office

Sample DMAS Account History Screen Revenue Sub-Object Code

Step #2 – Analyzing Control Code 2151 (Sales Tax Payable) Go to the Account Menu and enter the GL (0) Account along with account control code 2151 – Sales Tax Payable View Account Transactions by Month for the month you are currently working on. See sample included on next slide When analyzing 2151, back out last month’s payment to the State (Batch ID DMM###). If you don’t see a DMM### journal entry, there was no payment submitted on that account Calculating your totals for that specific month should give you the true Sales Tax to be reported to the State of FL

Sample Account History Detail Screen GL Account – 2151 (Sales Tax Payable)

Step #3 – Completing the Sales Tax Spreadsheet Once you have analyzed revenue and sales tax liability, then fill out the sales tax spreadsheet (sample included on next slide) At this time you can make all necessary corrections, in case of key punch errors, unrecognized items, and miscalculations of sales tax This step will allow you to investigate those items, correct them, and as result you will have a detailed reconciliation Keeping copies of deposits, checks, journals, etc. is essential to know the activity of your account Departments are responsible for keeping all supporting documentation on file for seven years in the event of an audit

Sales Tax Spreadsheet Example

Step #4 – Exempt Sales & Corrections Keep Exempt Sales Amount (column E) in mind. Your bottom line totals – Gross Sales Amount (column C) and Sales Tax Amount Collected (Column H) should mirror your DMAS totals. Column F should only detail Net Taxable Sales Notify us via e-mail if you have any corrections and attach a copy of the correction Journal Entry The original correction journal must be sent via interoffice mail to Medical Finance or Controller’s Office data entry depending on the campus. You always have the option to drop it off in person For any follow up questions or additional information on how to fill out your sales tax spreadsheet contact General Accounting @ ext. 86148

Submitting Your Reconciliation To The Controller’s Office Include the following: Sales Tax Spreadsheet with Prepared By and Reviewed By fields electronically signed off Submit as an Excel attachment (PDF is not acceptable) DMAS Account History Detail print screens for Revenue Sub –Objects (transactions for current processing month only) Providing backup such as copy of deposits, checks, invoices, etc. is optional. These backups are required to be kept by the Department Once you have performed a full reconciliation of your revenue and sales tax: E-mail Gables campus documentation to dmorciego@miami.edu E-mail Medical campus documentation to both a.soto2@miami.edu and dmorciego@miami.edu Submit by the 4th working day of the respective month

Summary The presentation covered sales tax topics and then the steps involved to submit the monthly sales tax reconciliation You should be able to view DMAS transactions by month and provide print outs as backup to the Controller’s Office Recognize that account control code 2151 – Sales Tax Payable is to be used for reconciliation and reporting Follow the guidelines and deadlines provided for submitting the monthly reconciliation

Thank You for Reviewing this Controller’s Office Presentation Visit our Tax Services Web Site: Resources and Technical Guidance for Additional Florida Sales Tax Information