How to Deduct the Business Cost from Payroll Commissions in Vagaro

Deducting Business Cost from Payroll Commissions is a feature within Vagaro that 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 service 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. 

1. Hover over Settings. Then click Service/Class Menu.

2. Locate the service or item on the Service/Class Menu. Click the three dots that correspond to it. Then click Edit. 

3. Enter the dollar amount that you want to deduct in the box under Cost to Business. 

4. Click on Reports at the top of the screen.

5. Click Payroll configuration on the left-hand side of the screen.

6. 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.

7. Once you have set up all your options, click on Save. If you are ready to run payroll click on Save and Run Payroll.