DBL Center brokers can make tax time easier for their customers

Happy New Year! As we get back to the grind after the holiday season, NY DBL insurance brokers may have taxes on their mind – as do their customers.

Tax forms, including W-2 forms and third-party Sick Pay statements, are due to employees by January 31, 2020 for benefits received and services selected for the 2019 tax year.

DBL Center brokers, including those who write their business with the carrier ShelterPoint, can give their NY DBL insurance clients a helping hand in prepping for the 2019 tax season.

DBL Center brokers can access information about benefits and payouts for their customers, in real time, on the Broker Dashboard. If you are new to DBL Center as a result of ShelterPoint’s acquisition of AmTrust Wesco, our Broker Dashboard is one of the many advantages you’ll gain working with us.

Here are a few tips and things you should know about the forms your clients will need in relation to NY DBL insurance and Paid Family Leave (PFL), courtesy of top-rated carrier ShelterPoint.

1. Advise your clients to ensure their information is up to date with their carrier.
All information on file, including mailing address, contact name, the legal name of the business, and the Tax Identification Number (TIN) should be accurate and current. Incorrect information can lead to delays in receiving forms or filing taxes. It’s easy to update information with a quick phone call to the carrier or by creating an online account.

2.  Remind your clients to look for their Informational Third Party Sick Pay statements prior to generating W-2 forms.

Any NY DBL insurance benefits received by your clients’ employees is reported on Third Party Sick Pay statements mailed out by the carrier quarterly. Companies should receive their annual Third Party Sick Pay statement from their carrier by mid-January. ShelterPoint mails these statements the week of January 6, 2020. The statements summarize benefit payments made and taxes withheld. Employers then report that information on employee W-2 forms.

3. Advise your ShelterPoint customers to be aware of forms mailed directly to employees.
Customers who use ShelterPoint’s FICA Remittance Service should be aware that employees will receive a separate W-2 form from ShelterPoint showing the total benefits received for the 2019 tax year. Employers will still receive a Third Party Sick Pay statement and brokers can also view the details in the Broker Dashboard. Employers should not double report the information received on W-2 forms they prepare. 

Similarly, employees who received PFL benefits totaling $600 or more in 2019 will receive Form 1099-MISC from ShelterPoint Life before January 31. These benefits are not reported on W-2 forms and are considered taxable non-wage income.

Businesses who use W-2 Preparatory Services from ShelterPoint should look for their employees’ W-2 forms to be mailed directly to the employer for review. It is the employers’ responsibility to file and distribute the tax forms before the January 31 deadline.

Moving into a Strong New Year with DBL Center and Our Top-Rated NY DBL Insurance Carriers

“The DBL Center family has grown rapidly as a result of ShelterPoint’s acquisition of AmTrust Wesco,” says DBL Center President and CEO Michael Cohen. “We are excited about the opportunities our relationship with ShelterPoint brings our brokers and their customers. From our proprietary Broker Dashboard to services that help brokers grow their book of business, we are moving forward in 2020 prepared to meet the challenges of an ever-changing NY DBL insurance market.”

Legal Disclaimer: This content is for informational purposes only. DBL Center does not provide tax advice. Readers should consult with a tax professional with any questions.