Vagaro offers many ways to customize your commission, from paying per service or product to tiered percentages or dollar amounts. On the Payroll Configuration page, you can set a Pay Frequency and pay employees weekly, every other week, monthly, or twice per month.
Note
Appointments for each employee must be marked as Checked Out or Completed to pay them for their work. If you don't have Vagaro Payroll, you also need to mark your payroll as paid to be able to close it out and add it to the Payroll History Report.
Commissions for customer deposits are paid depending on the payment method and whether the customer paid before or after the appointment.
Prerequisites: This feature is available for all Vagaro businesses on the web, tablet, Pay Desk, and PayPro. In the US, Vagaro Payroll is recommended if you want to send your employees direct deposits and withhold their income taxes.
Your payroll frequency specifies how often you pay your employees. You can pay employees Weekly, Every Other Week, Monthly, or Twice Per Month (on the 15th of each month and the last day of the month).
Note
Only employees who earn hourly wages are eligible for overtime. Check your State Overtime Laws to determine how overtime wages are calculated and paid.
If you migrated your Gusto account into Vagaro Payroll, your Vagaro Payroll Frequency must match the pay schedule settings in Gusto.
To select your payroll frequency:
Selecting the Weekly or Every Other Week specifies that your payroll closes every week and which day you pay your employees. You must also select the following options:
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Payroll Pay Date: The day when your employees will receive their pay.
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Payroll Ending Day: the last date of the current payroll period.
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Payroll Closing Day: the day of the week your payroll ends. For example, if Payroll Closing Day is set to Mon, your payroll will close every Monday.
For example, if your first payroll ending date is Friday, the 14th, the payroll period for hours worked will be the 1st-14th. The next payroll period will be the 15th-28th, ending Friday the 28th. Payroll will continue every other Friday.
If you selected Twice Per Month, payroll will always end on the 15th and last Day of every month, excluding hourly pay rates.
To run payroll in Vagaro for hourly wages, you must select Weekly or Every Other Week.
Important
We are not responsible for determining your employee's overtime hours based on the hours worked. This is because overtime occurs after hours worked in a day or total hours worked in a week. Not all calendar months have the same number of weeks or days in them; therefore, we cannot calculate hours and overtime hours worked for these odd months.
Setting your payroll frequency to Monthly ends your payroll on the last day of every month, excluding hourly pay rates.
To run payroll in Vagaro for hourly wages, you must select Weekly or Every Other Week.
Important
We are not responsible for determining your employee's overtime hours based on the hours worked. This is because overtime occurs after hours worked in a day or total hours worked in a week. Not all calendar months have the same number of weeks or days in them; therefore, we cannot calculate hours and overtime hours worked for these odd months.
Choose whether to include tips and commissions in your payroll, and whether to deduct specific business costs and rent.
To select your Vagaro Payroll options:
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Toggle Include Tips on after considering the following:
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Select Include Tips if you want to include all tips in the payroll, including cash and credit card tips.
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Select Include Tips if you allow employees to take cash tips but pay them for credit card tips at payroll. In this case, do not enter cash tips at the checkout screen.
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Do not select Include Tips if your employees are taking cash tips on the day that the service is completed.
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Select Deduct Service/Class Cost if you want to deduct the service cost from the sales price of the service.
For example, a service is $75 and has a $5 business cost. If you subtract the cost of business, the net profit for the service is $70. The system will only give service providers a commission on the $70 profit instead of the $75 sales price.
Note
If the business cost exceeds the commission amount, the commission for the service will be $0.
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Select Deduct Product Cost to deduct the product cost from the sales price.
For example, a product's business costs $2, and the sales price is $20. If you subtract the cost to business, the profit for the product will be $18. The software will only give service providers a commission on the $18 net gain instead of the $20 sales price.
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Select Deduct Discounts to subtract the sales discount from the service price when calculating commission.
For example, you offer a 50% discount on $30 haircuts. If this option is selected, the employee will receive a commission on the discounted price, which is $15. If this option is not selected, the service provider will receive the full $30 commission.
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Select Subtract Membership Discounts from Commission to deduct a membership discount when calculating the commission for each employee.
If you offer a product for $50 and provide a 25% discount to members, reducing the price to $37.50, the employee's commission will be based on the discounted price of $37.50. However, if this option is disabled, the employee's commission will be based on the original price of $50.
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Toggle Only Pay Hourly Rate or Commission (Whichever is Larger) on to pay an employee with either commission or hourly pay.
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Select Apply to all hourly pay rates.
If the commission earned during a pay period exceeds the total hourly pay, the employee will only be paid in commission. If the total hourly pay during a pay period exceeds the commission earned, then the employee will only be paid their hourly pay.
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Select Apply to specific pay rates, then select the roles that you want this setting to apply to.
If the total commission earned during a pay period exceeds the total hourly pay for the selected roles, the employee will not receive hourly pay for those selected roles. If the total hourly pay for the selected roles exceeds the total commission earned, then the employee will only be paid their hourly pay with no commission.
Important
We are not responsible for determining your employees' overtime hours based on the hours worked. This is because overtime occurs after hours worked in a day or total hours worked in a week. Not all calendar months have the same number of weeks or days in them; therefore, we cannot calculate hours and overtime hours worked for these odd months.
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Select Save.
Employee profiles must be added to the Payroll tab at the bottom of the Payroll Configuration screen. You can then select the Hourly Pay tab to assign varying pay rates based on the tasks your team members perform at your business. You can even offer commission for completed sales, services, and classes. As a further incentive, consider setting up tiered commissions so your employees earn more if they bring in more revenue.
Comments
2 comments
Our commissions run up to 40% which is $20,000.00. It wont let me add any tier above $9,999.00 Is there a way to add larger amounts?
Wendy, I put in a support ticket for this issue. The system does limit the top to $9999, and I don't know a way around it. Hoping support can help you.
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