Configuring the Default Tax Collecting Entity for a Program

Administrators can set the default tax-collecting entity from the Program's settings

Applies to:

  • Administrator

 

Last Updated: September 2020

This article explains how Administrators can set the default tax collecting entity for a Program.

Background

Tax is levied as a percentage of premium and payable to the relevant state taxation authority whenever specialty insurance is sold. 

Taxes may be collected by the Retail Agent, MGA, Marketing Company, or another party involved in the transaction.

Exactly which entity is responsible for paying the tax depends on which insurance program or product is being sold.


There are two parts to this article

 


Setting the default tax-collecting entity

BindHQ allows Administrators to set up the default tax-collecting entity for individual programs so the Taxes Collected By field auto-populates when Users are creating quotes.

  1. Navigate to the Administration tab and ensure the General Settings section is selected
  2. On the left, select the Markets & Carriers subsection, then click Add and edit programs.

  3. From the list of programs, select a Code in the left hand column to open the program’s details.

  4. Scroll down to the Taxes Collected By field and use the drop-down to select an entity. BindHQ supports three different options: In-House, Retail Agent, or Marketing Company.

  5. Scroll to the bottom of the page and click Save.

    When quotes are created using this program, the Taxes Collected By field automatically defaults to the entity you selected.

 

Note: The field is still editable on quotes, and Users can update the tax collector as needed.

 


How default tax-collecting setting impacts Accounting

After the quote is bound, any invoices and bills posted to Accounting automatically calculate taxes and fees based on the tax collecting entity:

  • In-house:

  • Retail Agent:

  • Marketing Company: