How to set up agents who are incorporated into WinMORE & AccountEdge:
FIRST: Make sure to check with your local real estate board to ensure you are following the local laws required for paying an associate's commission to a company. Some states require their license to be in that name or do not allow this process at all.
Provided this is legal in your area, you will need to collect from them a copy of their Articles of Incorporation which identifies the Incorporated Name (name of the company), the EIN#, the address for the corporation, and the Registered Officers (agent's name) of the corporation. as well as a W-9 for their corporation.
You may wish to create a basic document that they sign stating whether the corporation is to be paid all commissions, profit share proceeds, and/or both. Having them sign this document/authorization letter protects you as an MCA in case there are ever disputes regarding their profit share (especially if there are more officers of the corporation than just this associate.)
Note: Profit Share proceeds can continue to be paid to the agent's name and 1099'd under their SSN even if their commission is 1099'd under their EIN. If the agent chooses to have their profit share proceeds paid to the corporation you will need to obtain their new corporation's bank account information and update their WinMORE associate record with that info and enter their EIN into that screen as well. KWRI will be notified of the change during the next Transmittal.
To enter their new corporation info into WinMORE
- Please follow the instructions on how to 'Enter Companies' in the "Enter Miscellaneous Options" section of the WinMORE manual.
Once you have entered the Company into WinMORE:
- Open the Associate Record
- Add the EIN# to the 'Commission EIN#' field under the 'Commission' tab
- Once you type the EIN in this field the company name will automatically be updated
If the agent wants their Profit Share to also be paid to the corporation
- Enter the EIN# into the 'Profit Share EIN#' field under the 'Profit Share' tab.
Save the Associate Record.
WinMORE will now process all closings going forward under that EIN as opposed to the agent's SSN. The agent may receive two 1099s at the end of the year - one for production closed under the SSN, and the other for production closed after the EIN was entered. You may need to create a card in AccountEdge for the new Corporation's name as you will now pay the corporation for this associate's commission. The agent may also wish their office invoices to be written to the corporation as well, if so, simply create a new Customer Card file (or update their current one) with the new info. Let me know if you have any questions.