Compensation for Services

Modified on Mon, 4 Aug at 8:51 AM

MyTime provides various options for compensating your staff members for the services they perform. These include paying a straight percentage, a flat amount, tiered commissions based on revenue or productivity, or compensation per service.

Things to Know:

The ability to configure commission for booked services is governed by the "Accessing Staff Compensation" access control setting.
Straight Commission: You can pay staff a straight percentage commission or a flat commission per service.
Tiered commission by revenue: The commission is calculated based on All Revenue Earned or Amount Above Earned. You can set the base rate on which the commission is paid for the first tier and then add as many tiers as you like.
- Amount Above Earned - This setting applies a tiered commission for each revenue threshold reached. The commission is calculated by subtracting the tier threshold from the revenue and multiplying the difference by the tier percentage (revenue - tier threshold x tier % ).
- All Revenue Earned - This setting applies a single tier, corresponding to the total revenue. The commission is calculated by multiplying the total revenue by the tier percentage (total revenue x tier %).
Tiered commission by productivity: The commission is calculated based on All Revenue Earned or Amount Above Earned.
- Amount Above Tier - This setting applies an incremental commission for each productivity threshold achieved. The commission will be calculated as (productivity - tier threshold) x tier % x clocked hours.
- All Revenue Earned - This setting applies only one tier, the one that matches the overall productivity. The commission will be calculated as productivity x tier % x clocked hours.
If you set the service commission per service, it takes precedence over what you set on the main screen.
If a staff member's commission structure is updated midweek, the changes will apply to the current and future pay cycles in compensation reports, but previous payments will remain unchanged. For example, if a staff member's commission structure for Tiered Commission by Revenue was set to pay 10% for revenue above $300 and is updated on a Tuesday to 15%, the new commission rate will be reflected in the compensation reports for the current and all future pay cycles.
You also have the option to apply the updated rate to past appointments and purchases, but only if the compensation type is set to Straight Commission. In this case, historical compensation will be recalculated, which may take several hours depending on the volume of data.
Staff commission on services with a custom discount is determined by the "Calculate service commission post discount " setting in Business Setup > Settings:
If set to YES: Commission is calculated based on the discounted service price (after discounts are applied).
If set to NO: Commission is calculated based on the original service price (before discounts are applied).
If a promotion is applied, commission will be calculated according to the post- or pre-discount setting configured in the promotion interface.
If a membership discount is applied, commission will be calculated according to the post- or pre-discount setting configured in the membership interface.
When a ticket is fully refunded, the commission will be removed. If the ticket is only partially refunded, the commission will be adjusted based on the remaining amount.
One-Time Sale Discounts: If a one-time sale discount is applied to the service, the staff commission will be calculated based on the pre-discount or post-discount setting on the Business Setup > Settings page.
Flash Sale Discounts: If a flash sale discount is applied to the service, the staff commission will be calculated based on the pre-discount or post-discount setting on the Business Setup > Settings page.

Contents:

Setup Commission

Service Commission Checkboxes
Straight Commission for Services
Tiered Commission by Revenue
Tiered Commission by Productivity
Compensation by Service

Setup Commission

To set up compensation for services:

Navigate to Location Setup > Staff & Availability
Filter by the desired location
Select the staff member's profile
Scroll down to the Compensation Reporting > Service Commission section

Service Commission Checkboxes

If the staff is an hourly service provider, all three checkboxes will be shown. If the staff is salaried, only the option to “Pay the service commissions only if the staff productivity is above $” will be shown.

Pay the service commissions only if the staff productivity is above $

This setting ensures that service commissions are paid only if a staff member's productivity exceeds a specified dollar threshold. It’s designed to encourage efficiency and higher output from staff members:

Productivity is calculated based on the revenue generated by the staff member per hour worked.
If the productivity amount meets or exceeds the threshold, service commissions are paid and shown normally in the Compensation Report.
If the productivity amount falls below the threshold, the commission section for services is greyed out, indicating no commission is paid.
Examples: Threshold $200 productivity per work hour
- Scenario 1: A staff member works 8 hours and generates $500 in revenue.
  Productivity = $500 ÷ 8 = $62.50/hour
  Since productivity is below the $200 threshold, commission is not paid—the commission section for services is greyed out in the compensation report, however, the houly wages will be payable.
- Scenario 2: A staff member works 8 hours and generates $2560 in revenue.
  Productivity = $2560 ÷ 8 = $320/hour
  Since productivity is above the $200 threshold, commission is paid and shown normally in the compensation report while the hourly wage is greyed out

Pay the hourly wage only if the service commission is lower than hourly wages

This setting ensures staff receive both their hourly wage and service commission only when the commission is lower than the hourly wage.
If the commission is equal to or greater than the hourly wage, the staff member will be paid only the commission.

If the commission is equal to or greater than the hourly wage, the staff member will be paid only the commission.
If the commission earned is less than the hourly wage, the staff member is paid both the commission and the hourly wage.
Examples:
- A staff member earns an hourly wage of $20 and works 16 hours (excluding overtime), resulting in a total hourly wage of $320. If the staff member earns $268 in service commission (which is less than the $320 hourly wage), they will be paid both the hourly wage and the commission.
- A staff member earns an hourly wage of $20 and works 8 hours (excluding overtime), resulting in a total hourly wage of $160. If the staff member earns $161 or more in commission, they will be paid only the commission amount.

Pay the higher of service commission or hourly wage, but not both

This setting ensures staff are paid whichever amount is higher—either their hourly wage or their earned service commission—but not both.

If the service commission earned is greater than or equal to the hourly wage, only the commission is paid.
If the service commission is less than the hourly wage, the system will pay the hourly wage instead.
Examples: Worked: 8 hours plus 4 hours overtime → Total hourly wage = $280
- Scenario 1: Commission is lower than the hourly wage
  Service commission earned = $100
  Since $100 < $280, the hourly wage is paid, and the commission is not applied. Commission value will be greyed out.
- Scenario 2: Commission is higher than the hourly wage
  Service commission earned = $1000
  Since $1000 > $280, the commission is paid, and the hourly wage is not applied. The hourly wage value is greyed out.

Straight Commission for Services

Setup:

Straight Commission: Percentage

Service Value: $150

Commission Value: 30% per service

Total Commission: $45 ($150x30%)

Straight Commission: Flat Amount

Service 1 Value: $100

Service 2 Value: $130

Commission Value: $20 per service

Total Commission: $40

Tiered Commission by Revenue

Pay Cycle: Weekly

Staff Member: Laura Green

Service Revenue: $1,100

Commission Tiers:

Tier 1: $0 - $1000 per pay cycle, then pay 25% of the revenue earned
Tier 2: $1000.01 - $3000 per pay cycle, then pay 30% of the revenue earned
Tier 3: $3000.01 and above per pay cycle, then pay 40% of the revenue earned

If Tiered Commission by Revenue: Amount Above Earned is selected, the total compensation for this staff member will be calculated as follows:

1st tier:
Revenue = $1000
Commission = $1000 x 25% = $250

2nd tier:
Revenue = $99.99
Commission = $99.99 x 30% = $30

Total Commission:
$250 + $30 = $280

If Tiered Commission by Revenue: All Revenue Earned is selected, the total compensation for this staff member will be calculated as follows:

$1,100 × 30% = $330

So, the total commission is $330.

Tiered Commission by Productivity

Setup:

Pay Cycle: Weekly

Staff: Kelly Brown

Clocked Hours: 5

Service Revenue: $450

Service Productivity - $450 / 5 = $90

Commission Tiers

Above $0 per pay cycle, then pay 10%

Above $30 per pay cycle, then pay 20%

Above $60 per pay cycle, then pay 40%

If Tiered Commission by Productivity: Amount Above Earned is selected, the total compensation for this staff member will be calculated as follows:

(Productivity − Tier Threshold) × Tier Percentage × Clocked Hours

Given:

Productivity = $90
Tier Threshold = $60
Tier Percentage = 0.4
Clocked Hours = 5

The calculation is:

($90 − $60) × 0.4 ×5
($30 × 0.4) × 5
$12 × 5 = $60

So, the staff member's total compensation is $60.

If Tiered Commission by Productivity: All Revenue Earned is selected, the total compensation for this staff member will be calculated as follows:

Productivity × Tier Percentage × Clocked Hours

Given:

Productivity = $90
Tier Percentage = 0.4
Clocked Hours = 5

The calculation is:

($90 × 0.4) × 5
$36 × 5 = $180

So, the staff member's total compensation is $180.

Compensation by Service

To set compensation by service:

Select the "set compensation by service" hyperlink
A modal will open where you can enter the amount the staff member should be paid per service
Save

Compensation by service setup:

Swedish Massage: 10% commission
Gel Manicure: $15 flat commission

Example:

If a client schedules an appointment for a Swedish massage valued at $180 and a gel manicure valued at $100, the staff member will earn a total of $33 in commission. The commission is calculated as follows:

Swedish Massage: $180 x 10% = $18
Gel Manicure: $15 flat commission

Total Commission: $18 + $15 = $33