Reference Guide Sales and Use Tax e-services Webinar January 2018 This course is a live demonstration of e-services related to Minnesota sales and use tax. The webinar is designed for e- Services users including business owners, their employees, accountants, and bookkeepers who need working knowledge to meet their sales and use tax filing obligations.
Disclaimer This reference guide is for educational purposes only. It is meant to accompany an oral presentation and not to be used as a standalone document. This presentation is based on the facts and circumstances being discussed, and on the laws in effect when it is presented. It does not supersede or alter any provisions of Minnesota laws, administrative rules, court cases, or revenue notices. If you have any questions, contact us at salesuse.edu@state.mn.us, 651-296-6181, or 1-800-657-3777 (toll-free). Permission of the Minnesota Department of Revenue must be secured before exhibiting, reproducing, distributing or making any other use of any part of this reference guide. Produced by the Minnesota Department of Revenue 600 North Robert Street, St. Paul, Minnesota 55146 Copyright 2018, Minnesota Department of Revenue, All Rights Reserved. ii Reference Guide for e-services Webinar January 2018
Objectives After completing this course, you will be able to: Identify recent updates in e-services. Update contact information to allow options when requesting a verification code. Apply local taxes to business activities and filing sales and use tax returns. Relate the file and pay process to business activities. List resources to find answers for assistance with e-services. Agenda Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Housekeeping and Introductions... 4 minutes New e-services Design... 2 minutes Logging In and Verification Codes... 4 minutes Update Contact Information... 5 minutes Alerts & Accounts... 2 minutes Location Updates... 5 minutes Break... 5 minutes Correspondence... 3 minutes Filing and Paying a Sales & Use Tax Return... 22 minutes Resources... 5 minutes Course Review... 3 minutes TOTAL TIME... 60 minutes Reference Guide for e-services Webinar January 2018 iii
Table of Contents Part 1 New e-services Design... 1 Part 2 - Logging In and Verification Codes... 1 Part 3 Update Contact Information... 3 Part 4 Alerts & Accounts... 5 Part 5 Location Updates... 6 Part 6 - Correspondence...10 Part 7 Filing and Paying a Sales & Use Tax Return...12 Part 8 Resources...21 iv Reference Guide for e-services Webinar January 2018
Part 1 New e-services Design New e-services Design Notes: The Department of Revenue completed updates to e-services in early June of 2017. The upgrade enhanced e-services security, updated the look and feel, and added usability features. The new design allows easier navigation through the website. Although the look is different, filing the sales and use tax return remains the same. Part 2 - Logging In and Verification Codes In the Log In field, enter your Username and Password then select Logon. A new page displays to select how to get a verification code. Verification Code Depending how the user set up the preferences for verification codes, there are different options displayed to receive the verification code. In this example, the email verification code is selected. The email address is masked, but the first and last letters of the email along with the domain are viewable. Reference Guide for e-services Webinar January 2018 1
Notes: Select the Send Email button to get the verification code by email. The email with the verification code may take a few minutes to get to the inbox, allow at least 5 minutes to receive the code. If the code is not received within 5 minutes, select the button to request to resend the code. The verification code expires 15 minutes after requested. You must request another code if you do not log in within 15 minutes. Remember This Computer The option Remember this Computer is available to select for future log ins. This allows the user to skip requesting and entering the verification code upon log in. The default option selected is No. The option to choose Yes is available if the computer is not shared. Selecting Yes is a less secure option for logging in using the two-step verification process. If you log in using another browser, or computer, the verification code is required. See system requirements for additional information. 2 Reference Guide for e-services Webinar January 2018
Part 3 Update Contact Information Notes: Home Page The Home page has specific information related to the business and accounts. The menu and sections display differently since the upgrade, but the same functions are available within e-services. Change Verification Code Preferences The My Profile button allows the user to update login preferences, along with updating bank information, and managing 3 rd party access. We will focus on the Logon settings. Reference Guide for e-services Webinar January 2018 3
Notes: The Edit button allows the user to change information related to the verification codes, update contact information, or change security questions. Update the email, cell carrier, and cell phone fields to the user s specific personal information. This allows the user to have the option to select either preference upon log in for obtaining a verification code. A cell phone and an email address are required for the option to choose at log in how a code is sent. The Department of Revenue recommends to select Let me choose at log in. 4 Reference Guide for e-services Webinar January 2018
Part 4 Alerts & Accounts Notes: The Alerts section displays alerts specific to the business. There are alerts at the home page along with the account page. The alerts section displays information such as unread messages, balances, or returns past due. When a return is due or past due, an icon displays within the account alerts section. When a return needs attention on the account, a Needs Attention icon displays next to the account link. The icon is an orange triangle with an exclamation mark. The number of accounts displayed depends on the individual business. The accounts displayed depends on the user s access level. To view a specific account, select the Sales & Use Tax link. Reference Guide for e-services Webinar January 2018 5
Notes: Although the Sales & Use Tax Account page looks similar to the e-services Home page, it only shows specific Sales and Use Tax account information. The account alerts displays alerts related to sales and use tax. The alert section on this page indicates a return is due for the period ending 31-Dec-2017. The section titled I Want To allows the user to manage payments, returns, and locations. Part 5 Location Updates When a business needs to add a second location, they must contact the Department of Revenue for assistance. When there are two or more locations registered for the business, the e-services master is able to add additional locations within e-services. When updates are necessary to the business location, select the location code link to edit the location. 6 Reference Guide for e-services Webinar January 2018
On September 30, 2017, the Transit Improvement Area disbanded and each of the five counties implemented their own local county transit tax. Notes: In this example, the business is registered for five different local county taxes. However, the company only does business in the city of Hugo, which is located in Washington County. Therefore, I need to remove the other four county taxes. To make changes to the location, scroll to the bottom of the screen to view and select the Edit Location button. Make updates in all required fields to correct the business information. The Location Name is a required field and is missing from this screen. When the business does not have the location name completed, make sure to edit the missing information before continuing. Reference Guide for e-services Webinar January 2018 7
Notes: The location address must be provided. To update the address of the business, change the information to the correct address. Since this example only has business activity in Washington County, I want to remove Anoka, Dakota, Ramsey, and Hennepin counties from the account. To remove the local taxes, select the white box in the End Date column and choose the month and year the local tax ended from the dropdown menu. 8 Reference Guide for e-services Webinar January 2018
Notes: To add any local or other taxes to the account, use the check boxes on this page to select any additional tax types. The Review screen allows the user to see the local and other taxes that were removed along with any local or other taxes that remain on the account. On this screen, it is necessary to select Submit to save and submit the requested changes. Reference Guide for e-services Webinar January 2018 9
Notes: Part 6 - Correspondence Messages The Correspondence tab is used for messages and letters between the Department of Revenue and the specific individual profile or business. When the user wants to communicate with the Department of Revenue securely, use the messages tab to send and receive secure messages through the web message service. To send a message securely to the Department of Revenue, select the Send Message button, and draft the message. 10 Reference Guide for e-services Webinar January 2018
Complete the required fields and select the Send Message button. The Department of Revenue will respond to the message. When the reply is sent, an email notification is also sent to the user s primary email address. The email explains a new message is waiting for review in e-services. Notes: Letters There are two tabs, Unread and All. Letters that are sent by mail are also available to view in e-services. All unread letters from the Correspondence tab are displayed by default. Select the View Letters button to display all unread letters related to the account. There may be more letters to view, depending if the user has read any letters. To view all read and unread letters, select the View Letters button. To view the letter, select the letter link. If the browser does not open another window, it is necessary to allow popups for letters to display properly. Our e-services Help page has instructions to allow popups. Reference Guide for e-services Webinar January 2018 11
Notes: For assistance with popups, select the Click here for more information link or use the Menu button. Once the popup blocker is disabled, the user is able to select the letter link again to view the unread letter. Part 7 Filing and Paying a Sales & Use Tax Return When a sales and use tax account is open a return is required for each period the business is active, even if that means filing a zero return. A zero return is a return filed when the business has no activity to report. The information icons in e-services alert the user when a period with a return is due or past due. The orange triangle with the exclamation mark indicates action is required on the period. Remember: The data and account information used for this presentation is fictious. 12 Reference Guide for e-services Webinar January 2018
The first section you are required to complete is Gross Receipts. Gross receipts are the total amounts the organization received from all sources during its accounting period, without subtracting any costs or expenses. Notes: Gross Receipts include taxable and non-taxable sales, exempt sales, leases, and rentals sourced in Minnesota. Do not include sales tax collected in Gross Receipts. Enter the total gross receipts of all business activities sourced within Minnesota in the Gross Receipts for Location 001 field. Do not enter commas, periods, or cents when entering sales figures. Use whole dollar amounts and round to the nearest whole dollar. Reference Guide for e-services Webinar January 2018 13
Notes: On line 100, General Rate Sales Tax, enter the total taxable sales, leases, rentals, and services subject to Minnesota General Sales Tax in the Amount column. Do not include non-taxable sales or sales tax collected in the amount. Make sure to enter the taxable sales and not the tax collected. On line 200, Use Tax Purchases, enter the total purchases subject to Minnesota Use Tax in the amount column. Use tax applies when you buy, lease, or rent taxable items or services used in your business without paying sales tax to the seller. Use tax may be due when you bring items into Minnesota or when you take items out of inventory. Use tax is also due if a seller does not charge Minnesota sales tax on taxable items. On line 210, Variable Rate Purchases, enter the total purchases subject to a variable rate in the amount column and calculate the tax due manually to enter in the tax due column. Minnesota allows a credit for sales tax paid for items you use in Minnesota when some sales tax was paid to the seller. Use the variable rate to report use tax on purchases made when the vendor only collected some sales tax but not the full General Rate of 6.875%. Fact Sheet 146 Use Tax for Businesses has additional information related to Use Tax and the Variable Tax Rate for purchases. Local Tax Lines - The next line is line 432, Hennepin County Transit Sales. In this example, remember the local tax was ended when the Manage Locations section was edited. Since the tax lines are still active for the return, the option to leave the tax lines zero or delete the lines is available. 14 Reference Guide for e-services Webinar January 2018
Deleting a tax line on the return will only delete the local tax from the specific return. The local tax lines will not be removed from the account or unregister the business from the local taxes. Use the Manage Locations link from the Sales and Use Tax Account page within e-services to update local taxes on the account. Notes: The totals entered on the return are summarized to total the Gross Receipts for all locations, Taxable Sales for all locations, and Taxable Purchases for all locations. If any edits are required, select the View/Edit Return Information link correct any errors, or select the previous button to return to the previous page. The Tax amount shown includes the tax of all reported taxable sales and purchases. If any payments are made prior to completing the return, the credits appear in the Deposits and Credits line. When the return is filed late, projected penalty and projected interest calculates automatically. For more information on penalties and interest, use our website and enter the keyword Penalty in the search box. The Projected Amount Due line calculates a total of the tax, penalty, and interest, less any credits. Reference Guide for e-services Webinar January 2018 15
Notes: Buttons Previous During the filing process, to return to a previous page select the Previous button. Do not select back within the e-services menu or use the back button on the browser to go back within the return. Selecting the back button on the browser will delete any unsaved progress when filing a return. Cancel The Cancel button will delete any progress and return to the last screen displayed before opening the return. Save and Finish Later When filing a Sales and Use Tax Return, if the user is not ready to submit the return, select the Save and Finish Later button. When selecting this button, e- Services saves the information completed so far on the return. The return is not submitted to the Department of Revenue and the user must finish completing the return and submit it within 14 days of selecting this button. After 14 days, the saved return expires and the process to file a return must be restarted. Next The Next button advances to the next screen. If any errors are displayed, the error must be fixed to advance in the filing process. Payment The projected amount due displays along with a statement, Would you like to make a payment now? When no payment is submitted online with the return, a notice displays indicating no payment is being submitted with the return. 16 Reference Guide for e-services Webinar January 2018
Notes: To make a payment with this return, select Yes from the dropdown menu. The Department of Revenue does not accept electronic payments from a bank located outside of the United States. An answer to the question is required that asks, Will funding be transmitted to or received outside of the United States? Enter all required fields for the bank account information. When making a payment and entering bank information, the option to save the bank information is available. This allows the user to save the bank information to use again in the future. Reference Guide for e-services Webinar January 2018 17
To save the bank information for future use, select Yes. Notes: When making a payment during the process to file a return, the projected amount due displays in the Payment Amount field. The user must confirm this amount by entering the payment amount in the Confirm Payment Amount field. The Payment Date defaults to today s date. If necessary, change the date to a date in the future by using the calendar icon in the Payment Date field. 18 Reference Guide for e-services Webinar January 2018
Notes: The Return Summary, Projected Amount Due, and Payment Information displays. To submit the return and payment, select Submit. The confirmation page displays, which includes a confirmation number. The next time a payment is made for the Sales and Use Tax account, the saved banking information is available to use. Payments generally take three (3) business days to process and to post to the account in e-services. The processing time to submit to the bank starts on the date selected. Postdated payments are submitted to the bank on the next business day after the date selected in e-services. Reference Guide for e-services Webinar January 2018 19
Buttons Email Me Notes: The Email Me button sends an email of the confirmation page to the e-services email address listed within the user profile. Close The Close button returns the user to the Home Page. Printer Friendly The Printer Friendly button prints the web page displayed with the confirmation number. Print Return The Print Return button prints a copy of the return including each tax line. The print options will generate a popup screen. If additional assistance with popups is needed, see the help page by selecting the Menu link. 20 Reference Guide for e-services Webinar January 2018
Notes: Part 8 Resources e-services Help Page Use the Help page for e-services related questions. To view the Help page, select the Help link from the Menu dropdown. Reference Guide for e-services Webinar January 2018 21
Contact Us Assistance that requires a phone call or email is available. Use the information below to Contact Us. Contact information is also available on our website. Notes: Sales and Use Tax Contact Information Questions relating to your Sales and Use Tax Account activity? Email: salesuse.tax@state.mn.us Prefer telephone assistance? Call: 651-296-6181 or 1-800-657-3777 (toll-free) Questions relating to Sales and Use Tax Law? Email: salesuse.tech@state.mn.us Other Contact Information Business Income Taxes Email: businessincome.tax@state.mn.us Call: 651-556-3075 Withholding Tax Email: withholding.tax@state.mn.us Call: 651-282-9999 or 1-800-657-3594 (toll-free) Business Registration Email: Business.Registration@state.mn.us Call: 651-282-5225 or 1-800-657-3605 (toll-free) 22 Reference Guide for e-services Webinar January 2018
Minnesota Department of Revenue Website revenue.state.mn.us GovDelivery Messages Subscribe to email updates on sales and use tax law changes, rules, fact sheets, and other related information. Choose the updates you want - by tax type and publication type Choose the frequency of notifications Social Media Connect with us on social media: Subscribe to our videos on YouTube Follow us on Twitter Follow our Facebook updates Find employment opportunities on Linked In Reference Guide for e-services Webinar January 2018 23