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Set up Compensation for Staff Members

MyTime's compensation settings provide a lot of options to calculate wages according to your specific pay structure. These include fixed salaries, hourly wages by work type (e.g., productive time vs. training time vs administrative time), overtime wages, tiered commissions, and more. 

To set up compensation for staff members:

  1. Go to Business Setup > Staff & Availability 15760430-96d6026fd12b829ffb5a527843378981.png
  2. Click on a staff member to open their profile 
  3. Scroll to the Compensation Reporting section. Check “Track compensation for this staff member” 

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Contents

Salary Compensation

If you choose the Salaried radio button instead of the hourly radio button, you will be able to set the daily or per pay cycle salary for that staff member. unnamed__31_.png

Salaried staff receive the daily pay if they have scheduled hours, custom hours, or clocked hours for the day. If the staff member is also eligible for commissions, you can check the Eligible for product and service commissions box to expand the commission section.

Hourly Compensation

If you choose the Hourly radio button under Payroll Type, many options are shown below.  unnamed__32_.png

In the Wage section, you can set the overtime hours. Overtime calculation will be done for both numbers listed, so if you have it set to have overtime begin at 8 hours per day OR 40 hours per week, then any daily hours over 8 will be counted as overtime and any weekly hours over 40 will be counted as overtime. Again, weekly overtime will be calculated using the pay period you chose in the Settings menu.

After you set the overtime hours, you will see that the different payment types you created on the Staff & Availability page will be listed underneath with expandable arrows on the left side. You can expand each one to add the base wage and overtime wage for that payment type. We will show you here, as a reminder, whether the rate type is productive time or not.

Note: You are NOT required to enter overtime wages if you do not wish to do so.

Hourly Pay is calculated from clocked-in hours. In order to track hourly pay, you must use the clock-in/out feature. If you do not wish to pay your staff member hourly, leave both fields blank.

Commissions

Once you have entered the hourly wages for each payment type, you can set the commissions. Service providers are eligible for service, product, gift card, membership, and package commissions. Support staff, however, cannot clock in using productive payment types, so support staff commissions cannot be based on productivity. Likewise, support staff cannot provide services. As such, the support staff is not eligible for service commissions. 

Many of the commission types allow you to set a flat amount or a percentage: 

  • Flat Amount - This is an amount to be paid per service, regardless of the type of service, its value, duration, etc. Important: This is per service and NOT per appointment. An appointment can contain many different services and each would be paid the same rate with the flat amount setting.
  • Percentage - This option is used to pay a set percentage of each service, such as 10% per service. 

Service Commissions

There are many options for the service commissions section of the staff compensation. If the staff is an hourly service provider, all of the options below will be shown. If the staff is salaried, the option to “only pay hourly wage if service commission is lower than hourly wages” will not be shown. As stated above, support staff will not have any service commission options.  unnamed__33_.png

  1. The first option, “Pay the service commissions only if staff productivity is above $___” helps ensure that staff hit a quota before they can earn commissions. As a reminder, productivity is calculated by taking the total revenue earned and dividing it by productive clocked hours.
  2. The second option, “Pay the hourly wage only if service commission is lower than hourly wages.” is often used to make sure staff at least make minimum wage.
  3. The third option, “Pay the higher of service commission or hourly wage, but not both” means that once checked the staff will get either the service commission or hourly wage whichever is higher.

Straight commission - You can pay staff a straight percentage commission or flat commission per service. You can also set a separate regular rate and overtime rate if you choose.

Compensation by Service - This allows you to set different commission rates for each service. To set Compensation per service:

  1. Scroll down to the Service Commission section on the staff profile
  2. Select the set compensation by service link
  3. A modal will open where you can add compensation for each service  unnamed__34_.png

Tiered commission 

  • Tiered commission by revenue and productivity can be calculated based on All Revenue Earned or Amount Above Tier
  • Tiered commission by productivity uses the productivity rate, which is calculated by taking the total revenue earned and dividing it by productive clocked hours.
  • Tiers support both percentage commissions as well as fixed commission amount
  • You can set the base rate that the commission is paid on for the first tier and then add as many tiers as you like. 
  • The pay cycle here is the week, month, etc option that you have chosen on the Settings page in Business Setup.

Tiered commission by revenue 

  • Amount Above Tier - This setting applies an incremental commission for each revenue threshold achieved. Commission will be calculated as revenue - tier threshold x tier %  
  • All Revenue Earned - This setting applies only one tier, the one which matches the overall revenue. Commission will be calculated as total revenue x tier % 

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Tiered commission by productivity 

  • Amount Above Tier - This setting applies an incremental commission for each productivity threshold achieved. Commission will be calculated as (productivity - tier threshold) x tier %  x clocked hours.
  • All Revenue Earned - This setting applies only one tier, the one which matches the overall productivity. Commission will be calculated as productivity x tier %  x clocked hours.

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Product Commissions

Like service commissions, product commissions have options that are not available for everyone. The option to only pay if retail revenue is at least  % ___  of service revenue is only available for service providers. Otherwise, product commissions are very similar to service commissions. 

Straight commission - You can pay staff a straight percentage commission or flat commission per product. You can only set a separate regular rate for product commissions. Overtime rates will not apply like the straight commission for services.

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Tiered commission by revenue 

  • Amount Above Tier - This setting applies an incremental commission for each revenue threshold achieved. Commission will be calculated as revenue - tier threshold x tier %  
  • All Revenue Earned - This setting applies only one tier, the one which matches the overall revenue. Commission will be calculated as total revenue x tier %  

Tiered commission by productivity 

  • Amount Above Tier - This setting applies an incremental commission for each productivity threshold achieved. Commission will be calculated as (productivity - tier threshold) x tier %  x clocked hours.
  • All Revenue Earned - This setting applies only one tier, the one which matches the overall productivity. Commission will be calculated as productivity x tier %  x clocked hours.

Gift Card / Membership / Package Commissions

Commision on gift cards, memberships, and packages can be based on a flat amount or a percentage. Service providers and Support staff members can earn commission on packages, gift cards, and memberships.  

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See Also:

 

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