Pay Employees Net

Previously, regarding a policy with a broker, the percentage of Agency commissions was paid on the Agency commission amount before Broker commissions were paid out.

Now, the Agency has the option to default the Employee commissions that are a percentage of the Agency after the Broker commission is taken out of the Agency commission, and this process can be changed on each policy, as needed.

In the Administration Center, edit Agency/Agency Setup, Accounting Options, there is a check-box titled, “Pay Employees Net (After Broker Commission)” to show a check-box on each policy for “Employees Paid Net,” with the policy default selected.

Under Agency Setup, when the "Pay Employees Net" box is checked and you make a new policy, the "Employees Paid Net" box is also checked in the Additional Policy Information section. This box can be unchecked on an unbilled policy.

In the policy invoice, the employee who is owed a Percent of Agency commission (or a Percent of Employee Default, where the employee default is Percent of Agency) will receive a commission calculated from the Agency commission, minus the Broker commission. In this example, that is the Exec.

"Copy," "Renew," and "Rewrite" will carry over the check-box selection from the previous policy.

The Classic report “Commission Payable Statement” .csv extract shows the commission payable net of broker in column “P/BComm,” (when applicable) and the last column for “Employee Paid Net” shows Y (paid net) or N (not paid net).