Allstate Corp. has issued a statement to its insurance agents, warning them of a discovery of a number of errors occurring on their year-end reports and tax documents, which show information about annual incomes and figures that are used in the calculation of their annual bonuses.
This warning about errors comes only a month after the insurer made another type of miscalculation that cause the commissions in January to be underreported. These most recent mistakes have re-ignited a new upset from the sales force at the insurance company, where there was already some unhappiness about the intentions the company has to reduce their base pay.
The “Form 1099”, which indicates the income of each agent in 2011, holds the tax document error. In some cases, it included incorrect information about the pay received by an agent, where in other cases, the pay listed for one agent belongs to another individual. According to an Allstate Corp. spokesperson, out of approximately 11,000, there were around 4,700 agency-owners affected by the errors.
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The insurer has advised their agents that they may be required to file tax return amendments if they have already made their filings and payments. At the same time, they assured those agents that they will be reimbursed for the expense relating to the refilling of the returns.
An additional unrelated error was also made regarding the performance report in December, which includes the figures that are used for annual bonus calculations. The mistakes in those numbers were in the form of inaccurate premiums and policy counts.
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