Commission calculation guide

Last updated: March 20, 2026

Overview

This guide explains how commission calculation works in amplo, including required setup, policy-level configurations, rule creation, overrides, and producer settings. By ensuring all configurations, from producers and carriers to rules and overrides, are set up correctly before migration, your agency can automate commission calculations with accuracy, transparency, and minimal manual intervention.

Prerequisites

Before commissions can calculate automatically, confirm the following setup is complete:

Configuration

Producers

Each employee must be connected to their User record. If a producer is not linked, commission will not calculate.

Sub-producers

Represent non-employees (such as 1099 contractors). Should be created as Vendor Accounts with the Vendor Type set to Sub Producer.

Billing carriers

On the carrier detail page, check the Billing Company box to designate that the carrier handles billing.

Issuing carriers

Set the correct Business Type (e.g., MGA or Broker) depending on the carrier’s role in the transaction.\

Required settings

Policy-level commission

When creating or editing a policy, pay close attention to the following fields:

  • Carrier Business Type – Determines the agency commission received from the carrier.

  • Agency Business Type – Determines the producer commission.

    • This can be adjusted when carriers pay commission on new business, but the agency wants to pay producers on renewals.

Additional behaviors:

  • amplo automatically detects re-marketed policies and suggests a renewal status if multiple terms share the same effective date.

  • Commissions calculate when the policy is saved, not when it is billed.

Agency commission rules

Agency rules define how base commissions are calculated. Key elements include:

  • Effective dates. A policy’s effective date must fall on or after the rule’s effective date for it to apply. This is the most critical step!

  • Filters. Define which rules apply based on: Agency, Branch, Billing Company, Line of Business, and Issuing Carrier.

  • Promotional Dates. Allow temporary adjustments with start and end dates (e.g., for seasonal promotions).

  • Tier Types. Enable different commission rates by premium range (e.g., under $1,000 vs. over $1,000).

Best practice: Manually create your first set of rules before using upload templates to ensure accuracy.

Producer and sub-producer configuration

Producer rules define how commissions are split among individuals.

  • Role types

    • Named producer rules: Apply to specific individuals.

    • Global producer rules: Apply to all producers in a defined group (e.g., all Personal Lines sub-producers).

  • Filtering and targeting. Filters mirror Agency Rules, with the option to apply role-based targeting.

  • Commission basis. Can be calculated from Agency Commission or Policy Premium.

    • If using Policy Premium, percentages must be carefully managed to ensure accuracy.

Commission overrides and monitoring

Overrides offer flexibility but should be used sparingly.

Override options

  • Available for both Agency and Producer commissions.

  • Always apply overrides via the Commission tab — not the policy record — to prevent rule conflicts.

Monitoring and reporting

  • Override reports track usage and help identify patterns where new rules may be needed.

  • amplo automatically maintains an override history for audit purposes.

Producer commission rules and splits

  • Split-Shared Rules: Define how commissions are divided (e.g., 60/40 split between two producers).

  • Agency Fee Commissions: Can be included or excluded from producer calculations.