Premium Pro Help

Kentucky

The Kentucky module consists of quarterly returns and an annual reconciliation. The format of these returns and the tax rates to be applied to each city or county is contained in the Annual Bulletin available from the Kentucky Department of Insurance Local Government Premium Tax Unit. The bulletin should be reviewed before filing taxes to ensure that the proper amounts of premiums are assigned to each municipality and/or county. Municipal premium taxes are prescribed by Kentucky Revised Statutes 91A.080.

Kentucky Company Information includes four input schedules, one for each quarter. Each must be completed for every quarterly filing. A separate column exists for each line of insurance that can be taxed by each municipality.

A handful of municipalities assess a flat fee upon one or more lines of insurance. In such a case a 0% tax rate will appear in column 1 (Established Tax Rate). However, a fee will appear in column 3 (tax payable). Refer to the Annual Bulletin to determine what cities assessed a flat fee.

Selected cities assess a minimum tax upon total premiums payable every quarter. If premiums are not high enough to generate a tax that exceeds the minimum tax, the minimum tax will appear on the total line of column 3. The minimum tax will not foot to the tax generated for each individual line on insurance.

Form LGT 140

The LGT 140 sources information from each quarterly return (LGT 141). Subsequently, it does not calculate the tax liability for each quarter itself. The tax is always calculated on the quarterly LGT 141. You cannot complete the LGT 140 without completing the input schedule for each quarter.

Overpayments will be sourced to column 6 of the LGT 140. You may input any unpaid quarterly tax liability into column 6 by typing directly on the form. Then complete Section II by entering the appropriate dates in the Date Tax Was Paid column.

Form LGT 142 (Code A cities) and Code B cities

If you file a return for any city listed in the LGT 142 instructions, you must also file a return for the county where the city is located. These cities are also noted in the KY Office of Insurance Tax Code Descriptions as having a tax code of A.

After computing the Kentucky module, city premiums and taxes will be sourced to the appropriate county’s LGT 142. You should then enter the total of city premiums appearing on the LGT 142 into the county input schedule record along with premiums allocable to the county (if any premiums are allocable to the county).

There are also cities listed in the KY Office of Insurance Tax Code Descriptions as having a tax code of B. Although a LGT 142 credit is not allowed and the form need not be filed, city premiums must be also reported to the county.

An option is available to automate the above process of entering city premiums into the county. City premiums will be sourced to the county return. Please note: If additional premiums are reportable to the county that are not reportable to the city, these premiums must be entered into the input schedule (or included in the ASCII file).

Please note: The above option cannot be used if the ASCII file you are importing was created by Premium Pro Allocator.

Kentucky Overpayments

If you over-report premiums and over-pay taxes to any municipality, you may offset your tax liabilities in subsequent quarters (See the Annual Bulletin).  If you have an overpayment that is to be applied to your tax in any subsequent quarter, the overpayment information will print on the return.

Enterprise will track overpayment information based on the tax information you have input into the Municipal Module.  If you input negative premiums into the input schedule for any quarter and a negative tax payable is generated, the Municipal Module will track the overpayment from quarter to quarter.  The overpayment will be netted against the tax payable for each quarter until the overpayment has been exhausted.

The Department of Insurance does not provide a form to use concerning overpayment calculations. If your overpayment extends over several quarterly payments (or years), the local/state government agencies could request additional detail to justify how and when the overpayment was incurred.

Overpayments are rolled from year to year automatically.  The overpayment resulting from the prior year Annual Reconciliation will roll to the first quarter input schedule. You may also manually enter the overpayment information into the input schedule.

Kentucky Company Options

The following is available on the Company Options Tab:

• Hide Total Municipalities. Select this option to hide the total return in the Active and Inactive trees. This will also prevent the total return from being printed.
• Assess the tax on the policyholder. If this option is selected, the amounts in column 3 (LGT-141) will be added to the totals in column 5.  This option does not affect the tax liability.
• Assess a Collection fee on the policyholder.  If this option is selected, a collection fee will be calculated in column 4 (LGT-141).  The amount will be added to the totals in column 5. This option does not affect the tax liability.
• Report Code A and B city premiums to County.  After selecting this option, premiums from cities listed in the KY Office of Insurance Tax Code Descriptions having a tax code of A or B will automatically flow to the county form.  After selecting this option, you will not have to input city premiums into the line for the county return (input schedule).  Any additional premiums reportable to the county alone must be manually input or listed in the ASCII file.  Please note:  This option cannot be used if the ASCII file you are importing was created by Premium Pro Allocator.
• Generate Min Tax when tax is rounded to zero. If you are calculating returns in whole dollars, selecting this option will generate a min tax if the tax is less than 50 cents and rounded down to zero.
• Pay tax amount with Annual Reconciliation when tax is less than “x” amount. If you have a small amount of premiums and don't want to pay the tax each quarter, you may select this option. If the quarterly amount owed is less than the value you enter, this option transfers the amount of the quarterly taxes so that you pay them when filing the annual reconciliation.

E-File

The file menu includes 3 items related to E-filing: E-File Annual Reconciliation, Create Sample E-file, and Export Annual Reconciliation. See also Kentucky Efile.

1. Before you can E-file, you must submit a sample test file and register with the KY Office of Insurance.
2. Before you create the sample test file, you must insure that you have completed the following information on the company's general information form: Company Name, NAIC number, FEIN, Address information, and signer information.
3. To create a test file, select the File Menu and choose Create Sample E-File. Follow the directions on the dialog as to how to e-mail your test file to the Office of Insurance.
4. The Office of Insurance will send you a user id and password that you will be required to use while e-filing through Premium Pro.
5. After you have completed your annual reconciliations, select the File Menu and choose E-File Annual Reconciliation. Follow the prompts and click the submit button when you are ready to send.
6. The file will be submitted through TriTech's server and then sent directly to the Office of Insurance web server.
7. The Office Of Insurance allows only one submittal per company. Therefore, you cannot submit an E-file more than once. Any amended filing must be filed by paper copy.
8. After you have completed your E-filing, the Office of Insurance will send you an invoice for your filing fees.
9. If you wish to see a copy of the file that was submitted, select the File Menu and choose Export Annual Reconciliation.

Please note that in order to use the E-File feature, your company's firewall/proxy server needs to be configured to allow you access to the Tritech login server: ppo.tritechsoft.com. Please ensure that the firewall is configured to access to the server via https.