Premium Pro Help

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.

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.

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.

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.