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How to draw payment article

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hey whats up guys its angelo christian coming to you want to touch base and explain how your pay works when your loan officer starting out so in the beginning when youre hired youre paid a guaranteed pay and that is a salary that you get to keep and so if your agreement is that you know its an hourly salary and so youre paid an hourly rate up to 40 hours and over 40 hours is commission or Im sorry is a time and a half and so lets say that youre paid ten dollars an hour and then so up to 40 hours anything over 40 hours is 15 an hour for the first usually three months when youre training youre going to be able to keep that money as a salary and youre going to get a commission of 50 basis points so any loans that you turn into you turn into processing for the date that the disclosures go out youre going to get paid for example half a percent or 50 basis points it doesnt matter when the loan closes the matter is the dates of the disclosures go out so even if you close alone mu

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What is draw vs commission example?

You are basically loaning employees money that you expect them to pay back by earning sales commissions. For example, if you give an employee a draw of $2,000 per month, you expect the employee to earn at least $2,000 in commissions each month. This way, your business doesnt lose any money when paying the draws.

What is draw vs commission pay structure?

A draw is a simply a pay advance against expected earnings or commissions. Sales commission structures are usually designed to give an employee some control over how much they earn during a certain time period. It adds a direct incentive to performance: The more you sell, the more money youll make.

What is a draw pay in commission?

Also known as a commission draw or draw against commissions. A payment to a commissioned sales employee as an advance or loan against future, unearned commissions. A draw against commissions is an alternative to a straight commission (commission only) or salary-plus-commission payment scheme.

Is a draw pay good?

If its a non-recoverable draw, then it doesnt need to be repaid. However, recoverable draws are more common and are deducted from any earned commission at the end of the pay cycle. A draw can serve as a beneficial pay structure for many companies and their employees.

What is draw payment?

A draw is an advance against future anticipated incentive compensation (commission) earnings. This form of payment is a slightly different tactic from one where an employee is given a base pay plus commission.

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