For information on Canadian Profit Share Returns, click here.
Section 18.104.22.168.1 of the Policy & Guidelines Manual states: "KWRI calculates and distributes individual Profit Sharing funds by the 21st day of the month (see note below) via direct deposit into an account as specified by each individual participating in the Profit Sharing Program."
This means that the Market Center must have accurate ACH banking information on file for every individual entered into WinMORE. If the associate is unable to provide an active US or Canadian bank account for Profit Share, they will need to be removed from WinMORE.
Profit Share returns happen when the financial institution has rejected the funds due to improper banking information. The associate should confirm with the financial institution the proper ACH routing and account number needed to receive direct deposits. These numbers are not necessarily the same numbers as found on an associate’s check. It is important to get some documentation of the new account number so that you have it if any question comes up as a result of missing or incorrectly routed Profit Share.
NOTE: If the associate cannot be found, contact PSReturns@kw.com for further instructions.
Timeline for Profit Share Returns:
- 21st of Month – KWRI pays monthly Profit Share to associates. Returns come back daily to KWRI until the end of the month in which they are paid.
- Returned funds are held by KWRI pending correction of the banking information. (See below for updating banking information).
- An email is sent to the MC klrw email address with an attachment detailing the associate(s) with a return.
- Access your Profit Share Return Report Online: Log on to KWConnect.com under the Reports Tab > Profit and Growth Share > Profit Share Returns
- Any routing number beginning with a “5” will be rejected, and all US routing numbers are nine digits. The routing number must come from the bottom of a check, not the deposit slip.
- Profit share returns could incur fines from the returning bank, and these fines could be as high as $5,000 (per return). The amount of the fine is not related to the amount of the returned profit share.
Distributing Profit Share Returns:
KWRI will pay the returns directly to the associates; the money is not sent to the market center to be distributed.
When returns occur two things need to happen:
- The market center must obtain updated banking information and update WinMORE.
Request that agents with Profit Share RETURNS also contact KWRI at PSReturns@kw.com and provide their name and phone number. This step is essential - the associate MUST reach out directly to PSReturns@kw.com to complete the bank account information update process. If the associate does not complete this step, the returns will continue to accumulate, and the associate will not receive their profit share.
NOTE: Associates should NOT send their banking information through email. Once they email KWRI regarding their PS Return, a KWRI associate will call the agent to get their updated banking information over the phone. KWRI will make arrangements to ACH the returned profit share payment to the associate. The updated banking information will be shared with your office at the time the information is received and must be updated in WinMORE so that future months are not returned.
If the banking information update is connected to a change from an associate being paid to their SSN to the associate being paid as a company, be certain to update the associate record to show the company EIN in the profit share tab when you update the banking information.
Once the banking information is updated, on the next cycle where the associate has earned profit share, both the current month profit share and all accumulated profit share from returns will be deposited. Only a current profit share payment calculated by KWRI will trigger the banking information update in the profit share system at KWRI.
If the Return Amount is 0 (zero):
If an individual has a return with a “0” that means that there was a problem, but the bank knew where to send the money and put it in the proper account, however there is still a problem with either the routing number or bank account number. Usually they’ll give the code associated with the problem. Research the code, and update the associate's record in WinMORE.
Profit Share Return Codes:
Click here for information regarding the bank return codes (U.S. Only) noted on the Profit Share Return Report.
Held pending corrected bank account is a reason for a return not included on this list. When you see this message on the Profit Share return statement, you must verify the bank information with the associate.
Credit Refused by Receiver means that the receiving institution refuses the credit entry because of one of the following conditions:
- minimum amount required by Receiver has not been remitted,
- exact amount required has not been remitted,
- account subject to litigation and Receiver will not accept transaction,
- acceptance of transaction results in over-payment,
- originator is not known by Receiver, or
- receiver has not authorized the credit entry.
Profit Share Deposits Returned Prior to 2018
The handling of profit share returns was changed in 2018. Prior to that money was returned to the market center to pay to the associates.
Please send the profit share funds that were returned to the market center prior to 2018 to KWRI in the following situations:
- Deceased individuals that have no beneficiary form on file and there have been unsuccessful attempts to reach family/establish a beneficiary.
- If an agent has been removed and the funds have been undeliverable.
- If an agent has not paid the renewal fee but the market center is paying it on their behalf, and unsuccessful attempts have been made to reach them.
- Complete the steps to have the agent removed from the profit share system.
- Send all undeliverable funds to KWRI.