2023 Best Practices Study

17) Non-Employees - 1099 Producers/Outsourced Labor — Commissions, bonuses for agency's producers compensated on a 1099. Also includes expense for outside temporary staffing and temp-to-perm staffing, as well as expenses for outsourced services such as Patra or ResourcePro.

18) Total Payroll — The sum of items 16 – 17.

Benefits

19) Payroll Taxes — All payroll taxes (SS, FICA, FUTA, SUTA, etc.).

20) Retirement — Expenses related to a 401(k), ESOP/ESOT, pension, and other miscellaneous retirement benefits.

21) Insurance — Health insurance, medical reimbursements, life insurance, disability insurance, etc. Does NOT include Officer or Key Person life, which is included with "Administrative - Officer Life."

22) Other – Wellness programs, employee assistance plans, health club memberships, and employee gifts, etc.

23) Total Benefits — The sum of items 19 - 22.

24) Total Compensation — The sum of items 18 & 23.

Selling

25) Travel & Entertainment/Conventions — Airfare, meals, hotels, social/country club dues, convention related expenses. Does NOT include professional dues/memberships, which are included in "Operating - Dues/Subscriptions/Contributions." 26) Automobile Expense — Lease, gas, maintenance/repair, employee parking, mileage allowances, etc. Does NOT include employee auto insurance, which are included under "Insurance" in Operating section; also exclude auto depreciation, which is included under "Depreciation" in Administrative section. 27) Advertising/Promotion — Promotional/advertising materials, target marketing services, fees paid to advertising or public relations agencies, media buys, contest rewards, customer relations functions, gifts, telemarketing, etc. 29) Occupancy Expenditures — Total rent, utilities, building/grounds maintenance, property taxes, janitorial services, storage & other building related expenses. Should be net of rental/sublet income. Does NOT include building depreciation or leasehold amortization, which are included in "Administration – Depreciation." 30) Office Equipment Expenses — Leased and expensed equipment purchases and equipment maintenance for copiers, telephone & fax, postage meters, office furniture & fixtures. Does NOT include leased IT equipment, which is included in "Operating - IT Expenses." Does NOT include depreciation, which is included in "Administration – Depreciation." 31) IT Expenses — Expensed/leased computer hardware, software, license fees, maintenance and maintenance contracts, website development/maintenance, website hosting, internet connections, automation related training, regularly outsourced IT support, etc. Does NOT include equipment depreciation, section 179 items, or software amortization, which are included in "Administration – Depreciation." 32) Telephone — Local & long distance, cellular telephone, and fax expenses. Does NOT include leased telephone equipment, which is included in "Operating - Office Equipment Expense." 33) Postage — Postage, Express mail, FedEx, UPS, or courier services. Does NOT include postage machines, which are included in "Operating - Office Equipment Expense." 28) Total Selling — The sum of items 25, 26 & 27. Operating

34) Supplies/Printing — Office supplies, paper, copying/printing, coffee/soft drinks/break room expenses.

Glossary

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