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In this article, we will look at a few examples of how tiered commission is calculated on redo appointments. 

Things to know:  

1. The appointment date is used to calculate compensation for services in a pay cycle.
2. The revenue and commission for the original service will be deducted on the date the redo was done (if applicable based on account setting). This will apply even for services redone across pay cycles.
3. If compensation settings are changed for tiered commission, historical compensation data will also change.
4. For commission based on productivity, redo will result in a revenue adjustment (if applicable based on account setting) for the current pay cycle, but clocked hours will remain the same for both original staff members and redo staff members.

Contents

• Tiered Commission by Revenue for Redo Appointments 
• Tiered Commission by Productivity for Redo Appointments
• FAQs

Tiered Commission by Revenue  

Setup:

1. The original service is done in the last pay cycle on October 11 and the redo service is done in the current pay cycle - October 20.
2. Commission Structure 
   • Tier 1 above $1000 with 10% commission rate
   • Tier 2 above $2000 with 20% commission rate
3. Pay Cycle - 1 week

Case 1: The "Should Original Staff Member Receive Service Commissions On Redos?" setting is disabled

 

Tiered Commission by Revenue  (Amount Above Earned) 

Staff Member - Jenna P

Commission Formula - (Revenue - Tier Threshold) x Tier %

1. Date of the original service - Last Pay Cycle 

• Jenna P had a total service revenue of $1,000
• On the same day, Jenna performs an appointment with two services valued at $248 and total service revenue became $1248.
• Revenue Adjustment = $0 
• Commission Earned - ($1,248 - $1,000) x 10% =$24.80
• Jenna got paid on October 17

2. Date of the redo service - Current Pay Cycle

• Jenna P had a total service revenue of $1,048.00
• On October 20, Jenna did a redo for Haircut service  
• The original cost of the haircut - $200
• Revenue for original service:
  
  • The revenue for the original service will be deducted 
  • Appointment Revenue = $0
  • Revenue Adjustment = $200 
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $200
• Commission Earned - ($1,048 - $1,000) x 10% =$4.80

Tiered Commission by Revenue  (All Revenue Earned)

Staff Member - Alexa C

Commission Formula - Revenue x Tier %

1. Date of the original service - Last Pay Cycle 

• Alexa C had a total service revenue of $480
• On the same day, Alexa C performs an appointment with two services valued at $1,030 and total service revenue becomes $1,510.
  
• Appointment Revenue for initial appointment - $1,030
  • Haircut - $250
  • Facial - $780
• Revenue Adjustment = $0 
• Commission Earned - $1,510 x 10% =$151
• Alexa got paid on October 17

2.  Date of the redo service - Current Pay Cycle

• Alexa had a total service revenue of $1,048.00
• On October 20, Alexa did a redo for Haircut service  
• The original cost of the haircut is $250
• Revenue for original service:
  
  • The revenue for the original service will be deducted 
  • Appointment Revenue = $0
  • Revenue Adjustment = $250 
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $250
• Commission Earned - The commission tier is the same, so the commission rate remains 10% and the commission amount becomes $1,013 x 10% =$101.30

Case 2: The "Should Original Staff Member Receive Service Commissions On Redos?" setting is enabled:  

Tiered Commission by Revenue  (All Revenue Earned)

Staff Member - Alexis

Commission Formula - Revenue x Tier %

1. Date of the original service - Last Pay Cycle 

• Alexis had a total service revenue of $480
• On the same day, Alexis performs an appointment with two services valued at $730 and total service revenue became $1,210.
• Revenue Adjustment = $0 
• Commission Earned - $1,210 x 10% =$121
• Alexis got paid on October 17

2.  Date of the redo service - Current Pay Cycle

• Alexis had a total service revenue of $1,410
• On October 20, Alexis did a redo for Haircut service  
• The original cost of the haircut is $250
• Revenue for the original service will not be affected 
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $250
• Commission Earned - The commission tier is the same, so the commission rate remains 10% and the commission amount becomes $1,410 + $250 x 10% =$166

Tiered Commission by Revenue  (Amount Above Earned) 

Staff Member - Jane

Commission Formula - (Revenue - Tier Threshold) x Tier %

1. Date of the original service - Last Pay Cycle 

• Jane had a total service revenue of $1,000
• On the same day, Jane performs an appointment with two services valued at $248 and total service revenue became $1248.
• Revenue Adjustment = $0 
• Commission Earned - ($1,248 - $1,000) x 10% =$24.80
• Jane got paid on October 17

2. Date of the redo service - Current Pay Cycle

• Jane had a total service revenue of $1,048.00
• On October 20, Jane did a redo for Haircut service  
• The original cost of the haircut - $200
• Revenue for the original service will not be affected
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $200
• Commission Earned - Service Revenue + Adjustment - Tier Threshold x Tier %
• ($1,048 + $200) - $1,000 x 10% =$24.80

Tiered Commission by Productivity

Setup:

1. The original service was done in the last pay cycle on October 11 and the redo service was done in the current pay cycle - October 20.
2. Commission Structure 
   • Tier 1 above $10 with 25% commission rate
   • Tier 2 above $50 with 30% commission rate 
3. Pay Cycle - 1 week 

Case 1: The "Should Original Staff Member Receive Service Commissions On Redos?" setting is disabled

Tiered Commission by Productivity (Amount Above Earned)

Staff Member - Kayla L

Commission Formula - (Productivity - Tier threshold) x Tier % x Clocked Hours

1. Date of the original service - Last Pay Cycle 

• Kayla L had a total service revenue of $35 and 5 clocked hours
• On the same day, Kayla L performed an appointment with two services valued at $170 and total service revenue became $205. 
• Productivity - $205 / 5 = $41
• Revenue Adjustment = $0 
• Commission Earned - ($41 - $10) x 0.25 x 5 = $38.75
• Kayla was paid $38.75 on October 17

2.  Date of the redo service - Current Pay Cycle

• Kayla L had a total service revenue of $275 and 7 clocked hours
• On October 20, Kayla L did a redo for Haircut service  
• The original haircut cost $35
• Revenue for original service:
  
  • The revenue for the original service will be deducted 
  • Appointment Revenue = $0
  • Revenue Adjustment = $35 
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $35
• Productivity - $275 / 7 = 39.28
• Commission Earned - ($39.28 - $10) x 25% x 7 =$51.25

Tiered Commission by Productivity (All Revenue Earned)

Staff Member - Daniella

Commission Formula - Productivity x Tier % x Clocked Hours 

1. Date of the original service - Last Pay Cycle 

• Daniella had a total service revenue of $45 and 5 clocked hours
• On the same day, Daniella performed an appointment with two services valued at $180 and total service revenue became $225. 
• Productivity - $225 / 7 = $45
• Revenue Adjustment = $0 
• Commission Earned - 45 x 0.25 x 5 = $56.25
• Daniella was paid $56.25 on October 17

2.  Date of the redo service - Current Pay Cycle

• Daniella had a total service revenue of $335 and 7 clocked hours
• On October 20, Daniella did a redo for Haircut service  
• The original haircut cost $48
• Revenue for original service:
  
  • The revenue for the original service will be deducted 
  • Appointment Revenue = $0
  • Revenue Adjustment = $45 
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $45
• Productivity - $335 / 7 = 47.86
• Commission Earned -  $47.86 x 0.25 x 7 =$83.75

Case 2: The "Should Original Staff Member Receive Service Commissions On Redos?" setting is enabled:  

Tiered Commission by Productivity (Amount Above Earned)

Staff Member - Dana

Commission Formula - (Productivity - Tier Threshold) x Tier % x Clocked Hours

1. Date of the original service - Last Pay Cycle 

• Dana had a total service revenue of $35 and 5 clocked hours
• On the same day, Dana performed an appointment with two services valued at $170 and the total service revenue became $205. 
• Productivity - $205 / 5 = $41
• Revenue Adjustment = $0 
• Commission Earned - ($41 - $10) x 0.25 x 5 = $38.75
• Dana was paid 38.75 on October 17

2.  Date of the redo service - Current Pay Cycle

• Dana had a total service revenue of $335 and 7 clocked hours
• On October 20, Dana did a redo for Haircut service  
• The original haircut cost $35
• Revenue for the original service will not be affected
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $35
• Productivity - $235 + 35 / 7 = $38.57
• Commission Earned - ($38.57 - $10) x 25% x 7 = $50

Tiered Commission by Productivity (All Revenue Earned)

Staff Member - Kendra

Commission Formula - Productivity x Tier % x Clocked Hours 

1. Date of the original service - Last Pay Cycle 

• Kendra had a total service revenue of $45 and 5 clocked hours
• On the same day, Kendra performed an appointment with two services valued at $180 and the total service revenue became $225. 
• Productivity - $225 / 5 = $45
• Revenue Adjustment = $0 
• Commission Earned - $45 x 0.25 x 5 = $56.25
• Kendra was paid $56.25 on October 17

2.  Date of the redo service - Current Pay Cycle

• Kendra had a total service revenue of $265 and 7 clocked hours
• On October 20, Kendra did a redo for Haircut service  
• The original haircut cost $45
• Revenue for the original service will not be affected
• Revenue for redo service:
  • Revenue is calculated based on the price of the original service price
  • Appointment Revenue = 0
  • Revenue Adjustment = $45
• Productivity - $265+ 45 / 7 = $44.29
• Commission Earned - 44.29 x 25% x 7 =$77.50

FAQs

1. Would a staff member be allowed to fall to a lower tier as a result of a redo in the current pay cycle?

Yes

2. Would commission be deducted for redos that happen across pay cycles? In other words, a service that was performed in the last pay cycle is redone in the current pay cycle. Will the commission of the current pay cycle be impacted because the original service was in the last pay cycle? 

Yes

3. What happens in a case where the commission goes negative as a result of a redo?

MyTime will allow the commission to go negative. You will be allowed to decide how you want to handle the negative value in payroll processing. This will not be relevant to businesses that have minimum thresholds and minimum wage scenarios.

4. What happens if clocked hours are changed from a past pay cycle?

No adjustment will be made to the current pay cycle

5. What happens if an employee is changed on a past appointment when the appointment is in a past pay cycle?

No adjustment will be made to the current pay cycle

6. What happens if the price is changed on a past appointment when the appointment is in a past pay cycle?

No adjustment will be made to the current pay cycle

7. What happens if a discount is added or changed on a past ticket and commission is calculated post-discount when the appointment is in a past pay cycle?

No adjustment will be made to the current pay cycle