End of the year commish!

[senior-advisor-indiana]

can we get back to my subject!is everybody haveing
a up year?

I would assume most people in business still had an up year. What does it matter to you anyway?

 

[Agentguy5]

This was my first FULL year selling FE Full Time, and I spent a few years before this one selling Mortgage Protection.

I wrote about 30% more business this year than my BEST year selling MP.

My wife wrote over 120k in AP this/her first full year as a licensed agent.

It Looks like we found EXACTLY what we were looking for and are ready to take it to the next level...

 

[newtothegames]

I would assume most people in business still had an up year. What does it matter to you anyway?

it's called ending the year on A UP NOTE! NOW GET WITH THE PROGRAM!

 

[rousemark]

A ct

it's called ending the year on A UP NOTE! NOW GET WITH THE PROGRAM!

Even though I responded in the beginning, this is actually called ending the year on meaningless trivia. It really doesn't make any difference if a person ended the year up or down. If they were up, they have probably already spent the money. If they were down, the year is over and there is nothing they can do about it. The only thing that matters is what are you going to accomplish next year and how are you going to go about it. To dwell on what you accomplished in the past, good or bad is a waste of time.

 

[senior-advisor-indiana]

Re: A ct

Even though I responded in the beginning, this is actually called ending the year on meaningless trivia. It really doesn't make any difference if a person ended the year up or down. If they were up, they have probably already spent the money. If they were down, the year is over and there is nothing they can do about it. The only thing that matters is what are you going to accomplish next year and how are you going to go about it. To dwell on what you accomplished in the past, good or bad is a waste of time.

Are we suppose to have a plan for next year already?

 

[VolAgent]

You can 1099 anyone/company...as long as you have their ssn/ein and address. Doesn't mean it will hold up in an audit.

Keep your commission statements and any payments you sent them. It should hold up. I say should only because it is the IRS and they do seem to ignore anything they don't like.

What will be hilarious is when the company ignores the 1099 and then gets notified by the IRS when it doesn't all match up.

 

[newtothegames]

Re: A ct

even though i responded in the beginning, this is actually called ending the year on meaningless trivia. It really doesn't make any difference if a person ended the year up or down. If they were up, they have probably already spent the money. If they were down, the year is over and there is nothing they can do about it. The only thing that matters is what are you going to accomplish next year and how are you going to go about it. To dwell on what you accomplished in the past, good or bad is a waste of time.

rouse..if you dont learn from the past you are doomed to repeat it..duh lol:geek:

 

[Tom from Denver]

Keep your commission statements and any payments you sent them. It should hold up. I say should only because it is the IRS and they do seem to ignore anything they don't like. What will be hilarious is when the company ignores the 1099 and then gets notified by the IRS when it doesn't all match up.

Speaking from experience, having been through two IRS audits covering 5 tax years, when your tax returns do not match the 1099's the carriers send to you, the IRS system will flag YOUR return and not the various companies.

You will be audited and not the company.

My advice is to take up any variance between what you received and what they report with the insurance company commissions group right away. If this is an error - based upon THEIR corporate accounting of how and when they recognize commissions - the will issue you a revised 1099.

With the mix of carriers I have written for, about half report the total of advances, earned and renewals less any chargebacks they they have taken. These carriers are easy as that should total to the deposits that they have made into your account.

The other half of the carriers report your earned commission. So if you're taking advances, you may have received a $600 advance in December for a policy that has an effective date of 1/3/14. In that case you received $600 in cash, but will zero dollars for that policy on your 2013 1090, as you will have zero earned commissions on that policy for 2013.

If you are doing taxes yourself, I strongly recommend that you enter the 1099's you receive exactly as you receive them. Then if you have, for instance a chargeback that you have paid that you KNOW and have verified is not in the 1099 you were sent, record it as a sales expense, being sure to have a receipt, and proof of payment in case of an audit.

If you use a tax preparer, as JD and others have recommended, only use one that is experienced - avoiding the franchise and chain folks, or choosing someone because they are in the family, are your client or go to your church.

Trust me audits are NOT fun, and drain a tremendous amount of time and energy over at least two or three months.

Sent from my iPhone

 

[VolAgent]

Speaking from experience, having been through two IRS audits covering 5 tax years, when your tax returns do not match the 1099's the carriers send to you, the IRS system will flag YOUR return and not the various companies.

You will be audited and not the company.

My advice is to take up any variance between what you received and what they report with the insurance company commissions group right away. If this is an error - based upon THEIR corporate accounting of how and when they recognize commissions - the will issue you a revised 1099.

With the mix of carriers I have written for, about half report the total of advances, earned and renewals less any chargebacks they they have taken. These carriers are easy as that should total to the deposits that they have made into your account.

The other half of the carriers report your earned commission. So if you're taking advances, you may have received a $600 advance in December for a policy that has an effective date of 1/3/14. In that case you received $600 in cash, but will zero dollars for that policy on your 2013 1090, as you will have zero earned commissions on that policy for 2013.

If you are doing taxes yourself, I strongly recommend that you enter the 1099's you receive exactly as you receive them. Then if you have, for instance a chargeback that you have paid that you KNOW and have verified is not in the 1099 you were sent, record it as a sales expense, being sure to have a receipt, and proof of payment in case of an audit.

If you use a tax preparer, as JD and others have recommended, only use one that is experienced - avoiding the franchise and chain folks, or choosing someone because they are in the family, are your client or go to your church.

Trust me audits are NOT fun, and drain a tremendous amount of time and energy over at least two or three months.

Sent from my iPhone

You missed what I wrote. I said, the carrier's return would get held up when you sent them a 1099. The income they report wouldn't match the IRS records.

I wouldn't do this though, it would almost certainly backfire. First of all, you don't 1099 companies, only individuals. So that right there will probably get the IRS's attention on you.

 

[Tom from Denver]

You missed what I wrote. I said, the carrier's return would get held up when you sent them a 1099. The income they report wouldn't match the IRS records. I wouldn't do this though, it would almost certainly backfire. First of all, you don't 1099 companies, only individuals. So that right there will probably get the IRS's attention on you.

Sorry about that.

Sent from my iPhone