Understanding Draws

Draw is essentially a guaranteed amount paid to a new recruiter to pay back a balance or for a specific time frame to give them a chance to build up their clientele. This article contains information on Bullhorn Back Office calculates draws against commission earnings.

Once Enable Draw Information has been toggled on for a commission plan, it cannot be unchecked once the plan goes into effect.

If this is done in error, the plan will have to be ended by adding a date to the End Date field in the General Information section and then creating a new plan. Ensuring you uncheck the Primary box on the plan.

Below are some details on how Draws are calculated in Bullhorn Back Office:

  • Draws are tied to individual plans. So, if a Recruiter or Account Manager has more than 1 plan, then the draw is only looking at the plan that it is tied to.
  • Draws are all recoverable in Bullhorn Back Office.
  • Draws can accrue a negative balance, but not a positive balance.
    • In the case of a Rep having a negative balance, the Rep would be paid out the Draw or the Commission amount less the Negative balance.
      Example 1: Rep is scheduled to receive $6,500 in Commission. That Rep has a Draw of $3,000 and a Negative balance of -$2,000. The Rep would be paid out $4,500 ($6,500 - $2,000), since that is greater than the $3,000 Draw.
      Example 2: Rep is scheduled to receive $6,500 in Commissions. They have a Draw of $3,000 and a Negative balance of -$4,000. The Rep would be paid out $3,000 and would still have a Negative balance but is now set to -$500 since they paid back $3,500 of it ($6,500 - $3,000 = $3,500 paid back).
  • Draws are an amount per period. So, if your commission periods are weekly, then your draw is applied weekly.

  • The Draw Starting Balance is the positive balance of monies owed the company.

  • The Rep is paid out the Draw or the Commission amount, whichever is greater.

  • If a present Draw amount should be paid to the recruiter, that is entered in the Amount box. The End Date for draw is used if the draw has no starting balance and is only for a specified time period (60 days, 6 mos, etc).

  • The Current Balance amount is the total amount of Draw paid and is calculated based on approved commission reports only.