Guide To Reconcile Sales Tax Updated June 2019 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 exempt from Florida sales tax.

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://floridarevenue.com/taxes/tutorial/estimated_tax/firefox3/index.html?dhtmlActivation=inplace&dhtmlActivation=inplace

7% Sales Tax Brackets Amount of Sale Tax .10 - .14 .01 .15 - .28 .02 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 Here’s an example of how you may use this as reference If you go to the link shown above, the table on the right will appear in the first section Here is the link to Florida Department of Revenue Sales Tax Brackets for 7% taxable transactions http://floridarevenue.com/taxes/Documents/dr2c_7.pdf 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 Workday Screens Sales Tax Payable - Control Code Ledger 2151 Sales Tax Spreadsheet Balancing and Corrections The steps to submit the monthly sales tax reconciliation

Step #1 – Utilizing Workday To View Transactions by Month View transactions by month – run the “Find Journal Lines” report or other reports available for your use Find Journal Lines for sales tax tip sheet: https://workday-finance.it.miami.edu/training/workday-finance/tip-sheets-and-tutorials/accounting-journals/index.html Find Journal Lines tip sheet: https://workday-finance.it.miami.edu/training/workday-finance/tip-sheets-and-tutorials/reporting/index.html Print the Workday screen and/or provide Excel export from Workday since it is to be forwarded as backup to the Controller’s Office Go to Workday and run the appropriate report to view your Driver Worktag (PG######) and Ledger/Revenue Category

Sample Workday History Screen Ledger/Revenue Category

Step #2 – Analyzing Ledger 2151 (Sales Tax Payable) Run Workday report for your Driver Worktag (PG, BG) along with Ledger account 2151 – Sales Tax Payable View 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 (Line Memo DMM###). If you don’t see a DMM### journal entry, there was no payment submitted for that Driver Worktag (PG, BG) Calculating your totals for that specific month should give you the true Sales Tax to be reported to the State of FL

Sample History Detail Screen Ledger – 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 WD 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 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) Workday History Detail print screens for Revenue Category (transactions for current processing month only) Providing backup such as copy of deposits, checks, invoices, etc. is optional. This backup is 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 Workday transactions by month and provide print outs as backup to the Controller’s Office Recognize that Ledger 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