Deducting Business Cost from Payroll Commissions allows you to better manage your payroll for commission-based employees and booth renters. Once the feature has been configured, it will tell the system to deduct the cost to business prior to applying the commission percentages.
The percentage is calculated on the net of the service. This determines the payment the service provider receives. For instance, if the cost of a cut, color, and blow-dry is $50.00 and the Cost to Business is $10.00, the service provider will earn $40 in commission.
The system will do the following:
Price Charged for Service - Business Cost(s) = Net Earnings.
Net Earnings X Commission % = Employee's Pay.
Deducting the Business Cost from Payroll
1. Hover over Settings. Then click Service/Class Menu.
2. Click the Services button. Find the service or item on the Service Menu. Click the three dots that correspond to it. Then click Edit.
3. Enter the cost of business in the field under Business Cost. You'll go through this same process when adding the business cost to all your services.
5. Click Save when you're finished.
6. Now that we have added a business cost to our services, we can deduct this cost when calculating the commissions for all our employees. First, click Reports at the top of the screen.
7. Click Payroll configuration on the left sidebar under Employees.
8. Select Deduct Service/Class Cost if you want to deduct the service or class cost from the sales price of the service.
Select Deduct Product Cost to deduct the product cost from the sales price.
Select Subtract Discounts from Commission to subtract the sales discount from the service price when calculating commission.
9. Click Save to save the progress. Click Save and Run Payroll if you're ready to run your payroll.