The Bonus (Manager Overrides & Recruiting Bonus) tab of the Agent profile allows you to assign a bonus to a “Manager” as a recruiting or other type of payment on a per transaction basis. These payments are NOT subject an assigned commission plan and will be reported as “Other Income” on a T4A. For US clients, you can customize your 1099 utility in QuickBooks® accordingly. Bonuses are calculated on an “end” basis and can support an unlimited number of Managers and/or Assistants.
Once assigned to an Agent, the “Manager” will receive a payment consisting of a percentage and/or a flat dollar amount. You can select on what value to calculate the bonus based on the following options: Agent Portion, Gross, Adjusted Gross or Brokerage Portion. These values are represented on the Agent Detail window.
Deductions can be reduce either the Brokerage or Agent Portions.
If the Apply Cap is checked, this will ensure that any values will stop at the amount entered in the Cap Amount field. This configuration will use the Anniversary dates of the Agent whom has the “Manager” attached as the criteria for its’ calculation, meaning if the closing date of the transaction does not fall into the Anniversary Start and End dates, the calculation will not occur. The Amount to Date field will display the cumulative amounts paid using the same date criteria as described above.
If you do not provide bonuses, you can skip this tab.
The Manager Override will be displayed on the D1 format of the Transaction Record Sheet, Review Closing and applicable reports. If an Agent has double-ended a transaction with a Manager Override assigned, the Manager’s check/cheque will combine the values from each end into one check/cheque for the selected Manager Override. There is also an Assistant Commission Statement for the instance where an Assistant is paid.
If the Manager’s Override exceeds the broker’s portion of the particular transaction, you will presented with the following warning when you try to close the transaction: ““The Manager Override that you are trying to pay exceeds the Broker portion on this transaction, please manually override and adjust the amounts accordingly”
Manager’s Override in QuickBooks®
- Use of the Manager Override will generate a check/cheque payable to the Manager as selected on the Bonus tab of an Agent.
- The check/cheque will be issued from the Pay Manager From (BR) or (AG) bank account selected via Bank Accounts panel of the Accounting tab of your Company Profile.
- The expense will be tracked to the GL configured for “Manager Commission Expense” via Additional Accounts panel of the Accounting tab of your Company Profile.