Legal & General 2019 Year-End Closing Dates
Legal & General has informed us of their year-end protocol. Please read the explanation below regarding new business, 1099 income reporting and agent bonuses for the end of 2019.
New Business Processing
December 31, 2019 will be a normal business day and the standard service times for processing documents received that day will apply.
1099 Income Reporting
New business requirements need to be received and processed by Monday December 30th to be included in 2019 Miscellaneous Income Tax Reporting (1099 MISC). The commission payments sent Tuesday, December 31st following the December 30th closing are the final payments for the 2019 tax reporting year.
The agent’s individual cut-off date depends on when the agent has elected to be paid. For example, if the agent is paid monthly and the most recent scheduled date is December 5th, all commissions applied by December 5th will be included in the 1099 MISC for the year. The next pay date is January 5, 2019.
Most agents choose the standard method which is the 10th, 20th and the last day of the month. If the agent is set up on the standard method, then generally all commissions applied by December 20th will be included in the 1099 MISC for the year.
General Agent Bonus
The General Agent Bonus for 2019 is based upon all commissions processed through December 31, 2019. The payment date for each agent in the hierarchy may be different. Consider a situation where the general agent is paid on the standard schedule and the broker is paid monthly with the most recent pay date of December 5th. A case is paid on December 31st. The general agent’s share of the commission will process on December 31st and will be included in the bonus for 2019. The broker’s share will process on January 5th and will be included in the bonus for 2020.
Have questions? Call us at 855-888-8326.
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