financialpost.org – financial news

FINANCIAL MANAGEMENT DIVISION

As part of the Financial Management Division,the Accounting Services Bureau is responsible for maintaining the integrity,reliability,and accuracy of the Department of Insurance’s financial records. One of the Accounting Services Bureau’s functions is to ensure the timely processing of tax returns filed by insurers and surplus line brokers and the timely collection and reporting of all appropriate taxes. The timeframes for remitting tax payments to the California Department of Insurance are monthly, quarterly, or annually depending upon the tax liability of each insurer/surplus line broker. Following are the guidelines:
Surplus Line Brokers:
Pursuant to California Insurance Code Section 1775.1,every surplus line broker whose annual tax for the preceding calendar year was five thousand dollars ($5,000) or more shall make monthly installment payments on account of the annual tax on business done during the calendar year.
Insurers:
Pursuant to California Revenue and Taxation Code Section 12251,insurers transacting insurance in this state and whose annual tax for the preceding calendar year was five thousand dollars ($5,000) or more shall make quarterly prepayments of the annual tax for the current calendar year.