Fill Out a Valid Kentucky 74A118 Form Fill Out Your Form

Fill Out a Valid Kentucky 74A118 Form

The Kentucky 74A118 form is a crucial document used by insurers to report and remit the monthly insurance premium surcharge to the Commonwealth of Kentucky's Department of Revenue. This form is applicable to all domestic, foreign, and alien insurers, excluding life and health insurers, who are required to charge a surcharge on premiums collected for insurance coverage. Understanding the requirements and details of this form is essential for compliance and accurate reporting of insurance premiums in Kentucky.

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Common mistakes

Filling out the Kentucky 74A118 form can be straightforward, but many people make common mistakes that can lead to issues down the line. One frequent error is failing to include all required information. The form requires specific details such as the account number and the report month. Omitting these crucial elements can result in delays or penalties. Always double-check that every field is filled out completely before submitting.

Another mistake is miscalculating the amounts due. Line 1 should reflect total premiums collected, while line 2D must include all amounts not subject to the surcharge. If these figures are incorrect, the amount subject to surcharge on line 3 will also be wrong. This can lead to an incorrect surcharge due on line 4, which could result in penalties for underpayment. Take your time to verify all calculations to avoid these pitfalls.

Some individuals also overlook the importance of checking the correct boxes for amendments or surplus lines. If your return is amended, it’s essential to indicate this clearly on the form. Similarly, if you are filing for surplus lines, marking the appropriate box is necessary. Failing to do so can cause confusion and might lead to your form being processed incorrectly.

Lastly, many people forget to sign the form or provide the necessary contact information. The signature of a principal officer is required to certify the accuracy of the report. Additionally, including a phone number and email address ensures that the Department of Revenue can reach you if there are any questions or issues. Make sure to review the form thoroughly to ensure that all signatures and contact details are included before sending it off.

Document Breakdown

Fact Name Details
Form Title Kentucky Monthly Insurance Surcharge Report (Form 74A118)
Governing Law KRS 136.392 governs the insurance premium surcharge in Kentucky.
Filing Frequency Insurers must file this report monthly or annually, regardless of premium collection.
Due Date The report and payment are due by the 20th of each month.
Penalty for Late Filing A penalty of 2% of the surcharge due applies for each 30 days late, up to 20%.
Penalty for Late Payment Similar to late filing, a 2% penalty applies for late payments, with a minimum of $10.
Exempt Policyholders Federal government, 501(c)(3) institutions, and state/local governments for real property are exempt.
Interest on Late Payments Interest at the "tax increase rate" applies to unpaid liabilities from the due date.
Contact Information For questions, contact the Department of Revenue at (502) 564-4810.
Signature Requirement The report must be certified by a principal officer of the reporting company.

Detailed Steps for Filling Out Kentucky 74A118

Completing the Kentucky 74A118 form requires careful attention to detail to ensure accuracy. This form must be filled out for the monthly insurance surcharge report, and it is essential to provide the correct information for timely processing. Follow these steps to fill out the form correctly.

  1. Locate the form 74A118 and ensure you have the correct version for the reporting period.
  2. Fill in the Tax Month and Year in the designated fields at the top of the form.
  3. Enter your Account Number in the appropriate box.
  4. If applicable, check the box for Amended Return or Surplus Lines.
  5. Provide your Name and Address in the required fields.
  6. Report the month for which you are submitting the form in the Report for Month of section.
  7. Fill in the NAIC and FEIN numbers as required.
  8. In line 1, enter the total premiums collected, assessments, and other charges for risks located in Kentucky, excluding municipal taxes.
  9. For line 2, list amounts not subject to surcharge:
    • Line 2A: Enter premiums returned to policyholders on terminated policies.
    • Line 2B: Enter premiums collected for accident and health insurance.
    • Line 2B: Enter premiums collected for federal insured crop insurance.
    • Line 2B: Enter premiums collected for federal insured flood insurance.
    • Line 2B: Enter premiums collected for reinsurance.
    • Line 2B: Enter premiums collected for title insurance.
    • Line 2B: Enter premiums collected for workers' compensation.
    • Line 2C: Enter premiums collected from the federal government and various nonprofit institutions.
  10. Calculate the total amount not subject to surcharge and enter it in line 2D.
  11. Subtract line 2D from line 1 to find the amount subject to surcharge and enter it in line 3.
  12. Multiply the amount in line 3 by the current surcharge rate (0.018) and enter the result in line 4.
  13. Complete lines 5 and 6 for any penalties and interest, if applicable.
  14. Add lines 4, 5, and 6 to determine the total amount due and enter it in line 7.
  15. If there are any adjustments, enter the amount in line 8 and calculate the final total due in line 9.
  16. Indicate if you paid online and provide the confirmation number, if applicable.
  17. Sign and date the form in the designated areas, providing your title and contact information.
  18. Mail the completed form and payment to the Kentucky Department of Revenue at the specified address.