For information on US profit share returns, click here.
Section 184.108.40.206.1 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 Centre 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 sent to the Market Centre’s via cheque.
- An email is sent to the MC KLRWxxxx@kw.com 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
- Routing numbers must be for ACH transactions. Banks normally have different codes for different types of transactions.
- Profit share returns could incur fines from the returning bank, and these fines could be as high as $5000 (per return). The amount of the fine is not related to the amount of the returned profit share.
Distributing Profit Share Returns
- The Market Centre creates an entry receiving the money in their accounting software and code to the Profit Share account. Make sure to note who the fund is for in the entry.
- The Market Centre disburses funds to the associate(s) and requests updated banking information to input into 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 cheque. 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: The Profit Share account should be used to receive and distribute profit share returns because the balance is verified during transmittal; therefore there is no way to overlook cutting a cheque back to the individual.
NOTE: If the associate cannot be found, contact MCASupport@kw.com for further instructions.
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 something. 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: (1) minimum amount required by Receiver has not been remitted, (2) exact amount required has not been remitted, (3) account subject to litigation and Receiver will not accept transaction, (4) acceptance of transaction results in over-payment, (5) Originator is not known by Receiver, or (6) Receiver has not authorized the credit entry. To find more code explanations, go to the MCA Reference Guide, Profit Share Returns and and click the link for bank return codes.