Transcript GUIDE TO RECONCILE SALES TAX

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
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Florida Sales Tax Rates
Calculating Sales Tax
Sales Tax Brackets
SALES TAX TOPICS
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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
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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
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7% Sales Tax Brackets
Here is the link to Florida Department of Revenue Sales Tax Brackets for 7%
taxable transactions
http://formupack.com/pdf-Forms/SalesUseTax/FLFlorida/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
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
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
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Review DMAS Screens
Sales Tax Payable - Control Code 2151
Sales Tax Spreadsheet
Balancing and Corrections
THE STEPS TO SUBMIT THE MONTHLY
SALES TAX RECONCILIATION
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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
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Sample DMAS Account History Screen
Revenue Sub-Object Code
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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
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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)
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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
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Sales Tax Spreadsheet Example
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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 email 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
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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 [email protected]
• E-mail Medical campus documentation to both [email protected]
and [email protected]
• Submit by the 4th working day of the respective month
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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
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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
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