Running Commissions

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What Is a Pay Period?

• Start date and end date — the date range
• Status — Draft or Finalized
• Loans — funded loans whose funded date falls within the period
• Expenses — employee expenses allocated to the period
• Employee records — per-employee draw balance and wage data

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Pay Period Frequency

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Semi-Monthly Options

• First and Fifteenth: 1st-15th and 16th-end of month
• Fifteenth and Last: Same default split
• Custom: Specify custom start and end day-of-month boundaries

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Monthly Options

• First: 1st through end of month
• Last: Same as above
• Custom: Specify a custom start day (e.g., start on the 16th of each month through the 15th of the next)

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The Commission Run Workflow

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Step 1: Navigate to Run Commissions

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Step 2: Auto-Assignment of Loans

1. All funded loans without a pay period assignment are identified.
2. For each loan, the system determines which pay period date range covers the loan’s funded date.
3. If a matching draft pay period exists, the loan is assigned to it.
4. If no matching period exists, a new draft pay period is created with the appropriate date range (based on the company’s payroll settings) and the loan is assigned.
5. Expenses without a pay period assignment are similarly matched to draft periods by date.

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Step 3: Open a Pay Period

1. Review — Examine the loans, expenses, and draw settings
2. Preview — See calculated commissions before finalizing
3. Finalize — Lock in the commissions and close the period

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Step 4: Review (Step 1 of 3)

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Earnings Tab

• Loan number and borrower name
• Funded date
• Loan amount and broker compensation
• Loan officer name
• Calculated commission amounts (gross, file fee, net)

• Remove a loan from the pay period (it becomes unassigned and can be moved to a different period)
• Review commission calculations per loan

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Unassigned Loans Tab

• Click Add to assign an unassigned loan to this pay period.

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Expenses Tab

• Employee name
• Expense amount
• Date and notes

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Draws Tab

• Previous draw balance (carried over from prior periods)
• Draw balance payment (amount paid down from this period’s commissions)
• Draw balance carried over (remaining balance after this period)
• Wage paid (the guaranteed minimum payment)

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Step 5: Preview (Step 2 of 3)

• Per-employee summary cards with:
  • Employee name
  • Number of loans
  • Gross commission
  • File fee deductions
  • Expenses
  • Previous draw balance
  • Wage paid
  • Draw balance changes
  • Net pay

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Step 6: Finalize (Step 3 of 3)

1. Click Finalize Pay Period.
2. The system runs the commission engine one final time, locks draw balances for each employee, records which rules were applied, marks the period as Finalized, and generates commission accrual journal entries.
3. The pay period is now locked.

• Export Detail CSV — A line-by-line export of every commission result (loan, recipient, rule, amounts)
• Export Summary CSV — A per-employee summary export

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The Commission Calculation Process

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1. Load Data

• All loans in the pay period with their attributes (amount, type, lender, state, etc.)
• All associated employees (loan officers, assistants, processors, branch managers)
• All active commission rules
• Special case groups and performance boosters
• Expenses for the period

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2. Process Each Loan

• Filter rules to those for the LO role (not processor, not LOA, not BM)
• Sort by specificity (employee-specific rules first)
• Evaluate each rule’s filters and special cases against the loan
• Use the first matching rule

• Determine the basis (loan amount or broker compensation)
• Apply the commission rate (percentage, flat, or bps)
• Clamp to min/max if configured

• If the rule has a file fee, calculate it based on the fee type
• If “apply file fee first” is set, the fee adjusts the basis before commission calculation

• If the matched rule is linked to a performance condition, query the LO’s production stats
• If the threshold is met, calculate the bonus and add it

• For each assistant on the loan, find a matching LOA rule and calculate their commission
• For each processor, find a matching processor rule and calculate
• If the loan’s LO is in a branch, check for a branch manager override rule
• Any of these that are marked “deducts from loan officer” reduce the LO’s net

• Loan-level adjustments that apply to commissions are added to the LO’s net

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3. Build Employee Summaries

• Commission results are aggregated by employee
• Expenses are added per employee
• Draw balances are calculated:
  • If net earnings exceed the draw wage, excess pays down prior draw balance
  • If net earnings are below the draw wage, the deficit increases the draw balance
• Net pay is determined

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Draw Balance Handling

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Draw Calculation Types

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Draw Balance Flow

Previous Draw Balance (from prior periods)
  + Deficit (if commissions < draw this period)
  - Payment (if commissions > draw this period)
  = Draw Balance Carried Over (to next period)

1. The employee is paid their full commission earnings
2. Any excess above the draw amount can pay off prior draw balance
3. Net pay = net commission earnings - draw balance payment

1. The employee receives the draw amount (guaranteed minimum)
2. The shortfall (draw - commissions) is added to their draw balance
3. Net pay = draw amount - expenses

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Draw Carry-Over

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Example

• Draw type: Flat Amount, $3,000
• Previous draw balance: $1,500
• This period’s gross commissions: $5,000
• File fees: $300
• Expenses: $200

1. Net earned = $5,000 - $300 - $200 = $4,500
2. $4,500 > $3,000 draw, so excess = $1,500
3. Draw balance payment = min($1,500 excess, $1,500 prior balance) = $1,500
4. Draw balance carried over = $1,500 - $1,500 = $0
5. Net pay = $4,500 - $1,500 = $3,000

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Pay Period Statuses

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Unfinalizing a Pay Period

Caution: Unfinalizing a pay period reverses draw balance changes. If subsequent pay periods have already been finalized, their draw calculations may become inconsistent. Unfinalize only when necessary and consider the downstream impact.

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Managing Pay Periods

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Creating a Pay Period Manually

1. On the Run Commissions page, click Create Pay Period.
2. Enter the Start Date and End Date.
3. Click Create.

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Removing a Loan from a Pay Period

1. Click the Remove action on a loan row.
2. The loan is unassigned from the pay period and marked as manually unassigned (it will not be auto-assigned back).

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Adding a Loan to a Pay Period

1. Find the loan you want to add.
2. Click Add.
3. The loan is assigned to this pay period and the manual unassignment flag is cleared.

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CSV Export

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Detail Export

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Summary Export