TIP # 04B8-02
DATE ISSUED: October 8, 2004
INSURANCE PREMIUM TAX
The purpose of this TIP is to inform insurers about the documentation required for claiming the insurance premium tax salary credit. This TIP updates and corrects the previously issued TIP 95B8-19, dated July 24, 1995.
Qualifying Criteria for Salary Credits
When claiming a salary credit, there are certain requirements the insurer must meet to qualify for the credit. These requirements are:
- The employees claimed are not excluded under Section 624.509(5), Florida Statutes (F.S.);
- The salaries used in the credit calculation must be salaries paid to the insurer's employees by the insurer claiming the credit;
- Employees must be located or based in Florida; and,
- The insurer claiming the credit is the employer, and the employees are covered by the unemployment compensation provisions contained in Chapter 443, F.S.
Insurers claiming this credit must attach a copy of their quarterly Department of Revenue (DOR) Form UCT-6 (Employer's Quarterly Report) to their annual premium tax return, Form DR-908. If an insurer is claiming a salary credit, the Form DR-908 is considered incomplete without the DOR Form UCT-6. Failure to attach a copy of the UCT-6 may result in the:
- delay of processing returns;
- delay of processing refund requests; and
- loss of the salary credit.
Insurers who report their unemployment information to the DOR using magnetic media, or who use an independent payroll service, are also required to file the DOR Form UCT-6.
Insurance premium tax filers CANNOT use the following DOR forms as a substitute for the DOR Form UCT-6:
- Form UCT-50T (Magnetic Media Reporting Transmittal);
- Form UCT-6A (Quarterly Wage Listing Report-Continuation); or,
- Form UCS-71 (Quarterly Common Paymaster Concurrent Employment Report).
References: Chapter 443, Florida Statutes
FOR MORE INFORMATION
This document is intended to alert you to the requirements contained in Florida laws and administrative rules. It does not by its own effect create rights or require compliance.
For forms and other information, visit our Internet site at www.myflorida.com/dor. Or call Taxpayer Services, 8:00 a.m., to 7:00 p.m., ET, Monday through Friday, excluding holidays, at 800-352-3671 or 850-488-6800.
Hearing- or speech-impaired persons should call our TDD at 800-367-8331 or 850-922-1115.
For a detailed written response to your questions, write the Florida Department of Revenue, Taxpayer Services, 1379 Blountstown Highway, Tallahassee, FL 32304-2716.