Per the Market Center License Agreement, (part of the Franchise Disclosure Document), section 5.03 Other Fees and Charges, a $25 Annual Associate Fee is collected by the market center for all US and Canadian associates for establishing and maintaining affiliation with the Keller Williams System. This included all in status A=Active, PO=Personnel, or VR=Vested Retired as of the January transmittal done by the third business day of February.
Any Associate, including Vested/Retired, opting to not maintain their affiliation with Keller Williams will also result in loss of their status in the profit share system.
From WinMORE, print list of VR status associates for the annual associate renewal fee. Send out letters to VR associates with instructions on paying the $25 annual fee along with a declination form should they choose to opt out. Sample forms are available on KWConnect.COM (Resources > Market Center Leadership > MCA Resources (middle of the page, in the "More Popular on Connect" section) > MC Operations). For more information on the process for agents who decline or cannot be reached, see the knowledge base article Removing Vested Associate from the Profit Share System.
Any amounts received in December must be coded to a Market Center User Defined liability account named Prepaid Renewal Fees on the Balance Sheet prior to transmitting December data. In January you will move the total amount out of the liability account to Annual Associate Renewal Fee on the Income Statement. (9-9030 for Accountedge, 9903-0000 for Lonewolf)
If the market center no longer has contact with a (VR) associate and has tried unsuccessfully to locate the associate, follow the process here for removing associates from the profit share system. Click here for some tips on how to search for vested agents that are not responding to you.
Tip: Start the process of contacting VR associates early to ensure adequate time for a response; and allow the MCA time to submit all documentation to KWRI for VR removals.
The market center will collect the annual associate renewal fee from all other associates (PO and A) either in a separate January billing or as part of the normal monthly agent billing. During your January data transmittal (in February) you will create an invoice to KWRI to record the payment of the KWRI portion of the fees. You will use the same account you used to invoice your associates (9-9030 for Accountedge, 9903-0000 for Lonewolf) leaving the market center portion in that account as other income.
Of the $25 per associate:
$20 will be drafted by KWRI from your market center’s bank account in mid-February based on your associates’ status as of your January transmittal (to be completed the third business day of February).
$5 remains with your market center and should be allocated to the “Annual Associate Renewal Fee” account.
Invoice Active Associates:
In WinMORE, click Year End and select Renewal Report to see a preliminary list of associates the market center will be charged for. (See chart at the bottom of this article for help on who will be charged)
Invoice your associates using the "Annual Associate Renewal Fee" account for all activity regarding this fee. The $5 that remains in the MC is to remain in this account and should not be moved into Other Income.
Notes: There are certain circumstances where an associate may appear on a market center's roster but should not have been assessed a fee by your market center. If an agent is active in more than one market center, only one market center will be billed by KWRI. By default the market center that the Associate most recently joined will be the one billed by KWRI.
- All transmitting market centers will be charged this fee.
- Associates who are new to the market center in January will not be assessed this fee.
KWRI will compile a list of associates from the market center as of the January transmittal and will draft the market center's bank account $20 for each. Detail of the associates included will be posted to mykw.kw.com under: REPORTS > MARKET CENTER > ASSOCIATE RENEWAL DETAIL YYYY.
Refer to the Associate Renewal Report located on mykw.kw.com for the official list of who your market center was billed for.
Each market center will have the opportunity, after the fees have been drafted, to request a $20 credit for associates they believe they should not have been billed for. Do NOT request credits based on who you invoiced - refer to the KWRI official report for who you were billed for by KWRI. If you were not billed by KWRI no credit is necessary.
Requests for credit must be sent to MCASupport@kw.com in March. To be eligible for a credit the associate must have been either:
- Removed from the market center in January of the current year,
- Requested to be removed from the KW profit sharing system (applies to VR associates only) and the request be submitted by Feb 28th. Requests received AFTER Feb 28th will be processed, however are not eligible for credits. Click here for the process to request an associate be removed.
To determine if an associate new to your market center should be charged the Annual Renewal Fee in addition to the New Associate Application Fee, refer to this chart.