Surplus Lines Tax

Calculate surplus-lines tax and fees from caller-supplied jurisdictional rates.

Description

Surplus-lines tax and stamping fees can be modeled as percentages of a taxable premium plus fixed fees.

Surplus-lines tax and stamping fees can be modeled as percentages of a taxable premium plus fixed fees. This total reports charges rather than premium plus charges.^[1]

Calculate surplus-lines tax and fees from caller-supplied jurisdictional rates.

When to use Surplus Lines Tax

Use this tool to calculate surplus-lines tax and fees from caller-supplied jurisdictional rates.

Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.

How to use Surplus Lines Tax and understand its results

Prepare the supplied policy terms, dates, assumptions or recorded indicators requested. Keep monetary amounts on one currency basis and select the applicable thresholds separately.
Enter taxablePremium, taxRatePercent, stampingFeePercent, fixedFees using the field table and calculation rules, then run the tool.
Read taxAmount, stampingFee, totalDue. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
taxablePremium	Taxable premium (currency)	number; minimum: 0	Required
taxRatePercent	Tax rate (%)	number; minimum: 0	Required
stampingFeePercent	Stamping fee rate (%)	number; minimum: 0	Required
fixedFees	Fixed fees (currency)	number; minimum: 0	Required

Enter nonnegative taxable premium, rates and fixed fees. Return each percentage charge and their total with fixed fees.

tax=premium×taxRate/100; stamping=premium×feeRate/100; due=tax+stamping+fixed

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
taxAmount	Tax amount (currency)	number; minimum: 0
stampingFee	Stamping fee (currency)	number; minimum: 0
totalDue	Total due (currency)	number; minimum: 0

json

{
  "input": {
    "taxablePremium": 10000,
    "taxRatePercent": 3,
    "stampingFeePercent": 0.2,
    "fixedFees": 5
  },
  "output": {
    "taxAmount": 300,
    "stampingFee": 20,
    "totalDue": 325
  }
}

Limitations and assumptions

No jurisdictional rates, taxable base exemptions, filing obligations or current law are selected. Percentages are not capped at 100.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Fronting Fee: Calculate fronting fees and collateral costs as a share of premium. For a complementary task, use COBRA Premium: Calculate continuation premium from full plan cost and administrative load.

References

Surplus Lines Tax — tool.io

Similar or alternative tools

Fronting Fee
Calculate fronting fees and collateral costs as a share of premium.
COBRA Premium
Calculate continuation premium from full plan cost and administrative load.