Nevada Financial Institution Excise Tax – Sample Agency Impact
Large Agent Example:
$980,000 Annual Payroll ($245,000 per quarter) - $85,000 (exemption) = $160,000 Taxable Payroll
Taxes under General Business Payroll Tax = $160,000 x 1.17% x 4 Quarters = $7488 per year
Taxes under Financial Institution Excise Tax = $245,000 x 2% x 4 Quarters = $19,600 per year
The Additional Tax Burden = $12,112 per year
Agent in this example earned about $13,000 from the sale of products requiring the Series 6/63 licenses.
Small Agent Example:
$66,000 Annual Payroll ($16,500 per quarter, which is below the $85,000 exemption)
Taxes under General Business Payroll Tax = $0 per year
Taxes under Financial Institution Excise Tax = $16,500 X 2% x 4 quarters = $1320 per year
The Additional Tax Burden = $1320 per year.
Agent in this example earned about $650 from the sale of products requiring the Series 6/63 licenses.
District Manager Example:
$600,000 Annual Payroll ($150,000 per quarter) - $85,000 (exemption) = $65,000 Taxable Payroll
Taxes under General Business Payroll Tax = $65,000 x 1.17% x 4 Quarters = $3,042
Taxes under Financial Institution Excise Tax = $150,000 X 2% x 4 quarters = $12,000 per year
The Additional Tax Burden = $8958 per year
DM in this example earned about $10,000 from the sale of products requiring the Series 6/63 licenses.