How are taxes applied with a commission reduction?
Taxes are applied on the Gross Premium after any commission reductions are applied.
For example:
| Gross premium hereon: | $ 1,000.00 |
| Gross commission percentage: | 20% |
| Commission reduction percentage: | 5% |
| Net commission percentage: | 15% |
| Net premium before tax: | $ 950.00 |
| Tax (3%) | $ 28.50 |
| Total paid by insured: | $ 978.50 |
Disclaimer! The Knowledge Centre covers all features of the Glide platform. Some details in this article may not be applicable to your version of Glide.