How to Split Employee Commission  

We understand Employee commissions play a crucial role in motivating and rewarding employees for their sales and performance efforts. However, handling commission splits can sometimes be complex, especially in scenarios involving multiple roles, agreements, and varying terms. In this article, we will discuss how to implement splitting employee commissions using our software. 

 

To illustrate, consider a situation where an employee earns a full commission of 10%, but the commission is to be shared between two different employees. 

 

Step 1:  

Create an Employee Commission Agreement for 5% (half of the full 10% noted above).   

 

If you are unsure of how to set up commission agreements, please read our article here 

 

Step 2: 

Under each Employee, assign separate roles. 

 

FYI – If an employee prefers to keep their entire 10% commission intact without splitting, they will need to be associated with two roles. This action will cause the 5% commission to be processed twice when the employee is designated in the "Policy’s" Role fields, effectively adding up to the initial 10% sum. 

 

Step 3: 

Under each Employee, assign the 5% Employee Commission agreement. 

 

Important Note: The commission first transacted for the employee will persist throughout the policy term if the employee retains the role, even if the commission agreement is deactivated. Any newly assigned commission agreements, for the same policy and transaction types, will only become effective upon renewal or a new policy creation. ​ 

 

Below, you will find screenshots that demonstrate the implementation of employee commission splits during the policy purchase process. While generating a quote and finalizing a policy, simply choose the relevant employee beside their associated Role Name using the dropdown menu:

 

 

After selecting the Buy Now button, these will be visible in the “Roles” section within bond. 

 

5% of the Agency Commission ($69.20) will be paid to the two employees ($3.46). 

• Note: The transaction created Date and Effective date play a role in when you will see a transaction in an Employee Reconciliation as you cannot pull in transactions that have an Effective date into the future (past today’s date).  

 

Employee Reconciliation: Both employees reflecting the resulting split Employee Commissions due:

 

 

This is also viewable under Accounting Journal Entries if you were unable to preview within an Employee Reconciliation, which happens when the transaction Effective date is for the future. 

 

 

 

Option to pay Full Commission vs Splitting 

 

As mentioned earlier, if an employee prefers to keep their entire 10% commission intact without splitting, they will need to be assigned within two different Policy Role fields (see screenshot below).  This action will cause the 5% commission agreement, originally intended for splitting, to be processed twice.  This outcome effectively results in the restoration of what would have been a Full employee commission of 10%.