Reliable payout is what separates a trustworthy referral program from an unreliable one. IPA's payout process is designed to be predictable, transparent, and timely — so partners can plan around their referral income just like any other income stream.
The IPA Payout Process
- Policy placement: A referred client purchases a policy through IPA. The policy is attributed to your account.
- Monthly reconciliation: At the end of each month, IPA reconciles all placed policies with referral attributions. Commission sharing for the month is calculated and verified.
- Earnings statement: Within the first 10 business days of the following month, you receive an earnings summary showing all policies placed, fees earned, and renewal credits for the month.
- ACH payment: The total earnings for the month are deposited via ACH within 2–3 business days of the statement date.
What Shows Up in Your Monthly Statement
- New placements: each policy placed during the month, with the policy type, placement date, and referral compensation amount
- Renewal credits: each referring policy that renewed during the month, with the original placement date and renewal fee/credit amount
- Total earnings: the sum of new placement fees and renewal credits for the month
- Running total: year-to-date earnings for 1099 tracking purposes
Tax Treatment of Referral Payouts
Commission income is ordinary income. IPA issues a 1099-NEC for annual earnings of $600 or more. If you receive referral income below the 1099 threshold, you're still responsible for reporting it on your tax return. Consider tracking referral income throughout the year so you can set aside appropriate tax payments on a quarterly basis.