Deducting Business Cost from Payroll Commissions is a feature within Vagaro used to better manage your payroll for commission based employee's and booth renters. Once the feature has been configured, it will tell the system to deduct cost to business prior to applying the commission percentages. The percentages will be calculated on the net of the service and by doing so will determine what the service provider will receive in pay. For instance, if a customer comes in for a cut, color and blowdry, the service cost $50.00 but the Cost to Business is $10.00, the Service Provider will earn commission on $40.00 of the $50.00 service.
The system will do the following:
Price Charged for Service - Business Cost(s) = Net Earnings
Net Earnings X Commission % = Employee's Pay
Follow these Steps to Setup Payroll to Deduct Business Costs:
To go to the service/class menu settings page go to this link https://www.vagaro.com/ShopOwner/ManageNewServices.aspx otherwise follow the instructions below.
1. Hover your mouse over Settings, then click on Service Menu.
2. For each service you want to add a Business Cost to, click Edit on that item
3. In the field called Cost to Business, enter the dollar amount to want to deduct (Note: This is not a % but a dollar amount), then click Save
4. Continue steps 2 & 3 until all services are complete
5. Hover your mouse over Manage Business, then over Reports and click on Payroll
6. Click on the Payroll Configuration button
7. Add a check mark in the box next to Deduct Business Service Cost
8. Click "Save" and you are ready to run payroll.