The payroll feature of Vagaro is a useful feature designed to make it easy to configure and track employees hourly pay, tips and commission. Payroll can be set up to record this information weekly, bi weekly or monthly. You can run detailed report displaying a complete breakdown of each employees cumulative hourly/commissions and how much your business needs to pay them during each pay period.
Watch this video or follow the steps below to set up and configure payroll in Vagaro.
1. From the calendar screen, click Reports at the top.
2. On the left hand side click Payroll Configuration.
3. Here you can set up all of the payroll options that are specific to your business.
Payroll Frequency - lets you set up how often payroll closes or when you pay your employees. Choose Weekly, Monthly or Bi Weekly(every 2weeks).
Payroll Closing Day - the day of the week you want to end a pay period.
*Note this option can only be selected in weekly and Bi-Weekly Payroll Frequency.
Payroll Ending Day - The date in which the pay cycle ends. This will set the pay period cycle for Bi-Weekly dates.
*Note this option is only shown with the Bi-Weekly Payroll Frequency.
Commission Rolling Average - This takes the average of how many checks you set it to in the drop down menu and pays the employee the average amount.
Overtime start after: set hour many hours Overtime starts.
Overtime Hourly Multiplier. This option will multiply an employees hourly rate by the number set.
Include Tips - If you allow your employees to take there tips at the end of the day, then Do not check this box. Otherwise you’ll be paying them a second time.
- If you allow your customers to take their cash tips, but then pay them at payroll for any credit card tips, check this box, but do not enter in cash tips at the check out screen.
- If you check this box, then all tips, cash and credit card tips are included in payroll
Deduct Business Services/Class Cost - This option tells payroll to deduct the service cost from the sale price of the service. for example, lets take a cut and color service, the service is 75 dollars, and on average its cost about 5 dollars worth of color to complete this service. Subtracting the cost to business the net is 70 dollars for this service. The Vagaro payroll screen will see this and only give services providers commission on the 70 dollar net gain instead of 75 dollar sale price.
Don't Subtract Discount From Commission - This option tells payroll not to subtract the sale discount from the service price when calculating commission. For example: lets say you, as a business owner, are running a special saying that haircuts are half off for a weekend. If this box is unchecked, on a $30 haircut, the service provider will receive commission on $15. When this box is checked the service provider will receive commission on the full $30 price.
Commission Structure Per Employee
Below the Payroll Configuration is the Commission Structure Per Employee. Here you can set up an employees Hourly Rate ($), Threshold and Commission Percentage for Services, Products, and Classes
Threshold and Commission Percentage
The Commission threshold is the limit that tells payroll to stop paying one commission, and start paying another. For example; an employee is making 45% on all sales, with a threshold set at $1000 once the employee reaches $1000 in sales, the system will know to bump the commission percentage up to 50%. The employee will be making 50% commission on all sales for that pay period. The threshold can be set for Service Sales, Product Sales, and Class Sales.
Once you have all your options set up click Save.
If you are ready to run payroll click Save and Run Payroll.