Setting up & Managing Mentor Fees or other Payable type deductions

Setting up & Managing Mentor Fees or other Payable type deductions

MENTOR FEE DEDUCTION

Is defined as fees paid to an internal (or mentoring) Agent as a deduction generated from another Agents commissions. 

Previously Agent Payees created through deductions were not associated with an agent account. 

It's now an option to set a default payee in your payable type deductions!  For Mentor type fees, make sure you choose the option Yes to option 'Are you paying an agent or Broker?' 


You can override any profile deduction to update the name of the payee on an agents profile. 


Once those fees get paid out to the earning Agent, you will then see them on that Agents profile as part of their annual reportable commission earnings. 

You can also override these payee names on the deduction page of the deals: Just navigate to the deduction sub-menu.  Click the change payee link in the Mentor Fee deduction.

Remove the Payee Name; this will open up the Payee (Agent) pulldown menu, chose your agent's name from there.


1099s and T4A Reporting

To include Mentor fees in the 1099 or T4A you can head to the Brokerage settings page and check the option to include them. 

Deductions Report

The deductions report download will now indicate the payee name as well as if the fee is correctly linked to an Agent profile.

Select your payable or Mentor fees and export the file: 


THIRD PARTY DEDUCTION

Is defined as fees paid to an External Party, such as Transaction Coordinator, an outside Vendor, etc.
Follow the steps above on creating this type of Fee with the exception that you will mark the question 'Are you paying an Agent/Broker' as No

Add the name of the payee and finish mapping the rest of the deduction>Save.  Please note, there must be a value added to the payee field or you will not be able to save the deduction.  This payee name will be the default name AND can be changed anytime in a deal.

    • Related Articles

    • Deductions 101

      Creating A Deduction Most deductions are straightforward and can be created by following the tooltips next to their corresponding fields. Important Tip when setting up a new Deduction Template! It's important that whatever type you deduction you set ...

    • Payload: Paying Mentor fees, Third Party payouts, and Agent Savings

      !!Important Please read before proceeding: Third party paying from Payload CAN NOT BE REVERSED, so please make sure everything is correct before you finalize a payment. There are different scenarios to consider so please click the on the scenario ...

    • Tracking your payable deduction

      Introduction: Payable Deductions are often setup 2 different ways; the first is setup to track and clear out your Commission Payable GL account, no taxes are applicable to this fee and you're not wanting to track this fee in your own GL account.  The ...

    • Adding Deduction Fees to Agents Profiles and Overriding levels

      Adding Deduction Fees to Agents Profiles and Overriding levels In order to automate fees on commission earnings you'll need to add fees to an Agents' profile in Loft.  Open the Agents profile and scroll down until you see the deductions section. From ...

    • Managing Deductions

      How the deduction amount is calculated When a deal and/or agent matches a deduction's settings and the deduction is applied the amount will be calculated automatically. Let’s say we have a deduction with the amount based on the agent YTD commissions ...