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Setting up your Staff's Compensation Tracking

You can track your staff's compensation in a variety of ways:

  1. Hourly Pay
  2. Straight Commission for products and/or services
  3. Tiered Commission for products and/or services
  4. Salary

In this article, you'll learn how to set up all three.

Step 1: Turn on Compensation Tracking

To turn on Compensation Tracking, go to your Settings:

  1. Select your Business Name (or your name) in the upper right
  2. Select Business Setup (or Location Setup)
  3. Select Settings

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Scroll down to the Staff section.

Switch the Track compensation by staff member setting to YES.

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Select Save at the bottom.

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Step 2: Set up Compensation for Staff Members

Navigate to the Staff & Availability section:

  1. Select your Business Name (or your name) in the upper right
  2. Select Business Setup (or Location Setup)
  3. Select Staff & Availability

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Click on a staff member to open their profile.

 

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Scroll to the Compensation Reporting section. Check Track compensation for this staff memberYou must have the box checked to allow tracking compensation in the staff’s profile.

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Once this box is checked, you will have the option to add either hourly compensation or salary compensation.

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 Hourly Pay

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

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Salary Compensation

If you choose the Salaried radio button instead of the Hourly radio button, you will be able to set the daily salary for that staff member.

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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.

 

 

Commissions

Once you have entered the hourly wages for each payment type, you can set the commissions. Service providers are eligible for both service and product commissions. You may also choose to set commissions based on productivity, which is calculated by taking the total revenue earned and dividing it by productive clocked hours. You can either pay commissions only when a certain productivity dollar value is reached or you can choose to pay tiered commissions by productivity.

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, support staff are 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 the service commission is lower than hourly wages” will not be shown. As stated above, support staff will not have any service commission options.

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The first option, “Only pay service commissions if staff productivity is above $___” helps ensure that staff hit a quota before they can earn commissions. As a reminder, the productivity is calculated by taking the total revenue earned and dividing it by productive clocked hours.

The second option, which is only for hourly staff, is to “only pay hourly wage if service commission is lower than hourly wages.” This is often used to make sure staff at least make minimum wage.

Straight commission (shown above) - 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.

Tiered commission by revenue/productivity - You can pay staff tiered commission by revenue or productivity. 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 or month option that you have chosen on the Settings page in Business Setup. Tiered commission by revenue bases the tiers on the total service revenue for the pay cycle while tiered commission by productivity uses the productivity rate, which is calculated by taking the total revenue earned and dividing it by productive clocked hours as stated above.

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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.

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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.

Tiered commission by revenue/productivity - You can pay staff tiered commission by revenue or productivity. 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 or month option that you have chosen on the Settings page in Business Setup. Tiered commission by revenue bases the tiers on the total product revenue for the pay cycle while tiered commission by productivity uses the productivity rate, which is calculated by taking the total revenue earned and dividing it by productive clocked hours as stated above. Only service providers are eligible for the tiered commission by productivity.

 

 

 

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