Deducting the business costs from payroll commissions for services, classes, and products allows you to reduce administrative and accounting tasks when running payroll for your commission-based employees and booth renters. By specifying business costs, Vagaro automatically deducts the percentage of the business cost from the net amount that the service provider receives.
Commissions are calculated as (Price Charged for Service - Business Cost) x Commission Percentage.
For example, if an employee with a 30% commission percent sells a $50 service with a $10 business cost, they'll receive $12 in commission from that service because ($50-$10) x 30% = $12.
Prerequisites: This feature is available for all Vagaro businesses. At least one employee must be set up to receive a commission for services, classes, and products in the Payroll Configuration screen. In the US, Vagaro Payroll is recommended if you want to send your employees direct deposits and withhold their income taxes.
Each service and service add-on will need to be updated individually to add its business cost.
To specify the business cost of a service or service add-on:
-
Go to → → → .
-
Select Services.
-
At the top of the screen, verify that the Service/Class Menu is being created for the correct employee, select the Filters
button to choose another employee, or select the displayed name to change it to another employee.
-
Select the service or service add-on to add a business cost to, then select Edit, or create new ones.
-
Scroll down to Business Cost, then enter the amount.
-
Add or update any other information for the service or service add-on as needed.
-
Select Save.
To specify the business cost of a service or service add-on:
-
Go to → → .
-
On the Services tab, select the service or service add-on to edit.
-
Enter the Business Cost.
-
Add or update any other information for the service or service add-on as needed.
-
Select Save.
Each class, class add-on, and workshop will need to be updated individually to add its business cost.
To specify the business cost of a class, class add-on, or workshop:
-
Go to → → .
-
Select Classes.
-
At the top of the screen, verify that the Service/Class Menu is being created for the correct employee, select the Filters
-
Select the class, class add-ons, or workshop to add a business cost to, or create new ones.
-
Scroll down to Business Cost, then enter the amount.
-
Add or update any other information for the class, class add-on, or workshop as needed.
-
Select Save.
To specify the business cost of a class, class add-on, or workshop:
-
Go to → → .
-
Select the Classes tab.
-
Select the Action
menu for the service or service add-on to edit and select Edit, or add new ones.
-
Enter the Business Cost.
-
Add or update any other information for the class, class add-on, or workshop as needed.
-
Select Save.
Each product will need to be updated individually to add its business cost, which will be reflected in any bundles that they belong to. If a product has one or more variants, each variant will have to be updated to add its own business cost.
To specify the business cost of a product:
-
Go to → +.
-
Select the product (or variant) to add a business cost to, or add new ones.
-
In the top-right corner of the screen, select the Action
-
Scroll down to the Pricing heading, then enter the Business Cost.
-
Add or update any other information for the product or variant as needed.
-
Select Save.
After business costs have been specified for your services, classes, and products, you can then update your payroll settings for them to be deducted from your employees' commissions. You can also choose whether to deduct discounts given to customers at checkout instead of limiting employees from granting discounts to customers.
These deductions are selected in the Payroll Configuration screen, which is available only on the web, tablet, Pay Desk, and PayPro.
To select the business costs to be deducted from your payroll:
-
Go to → +.
-
Select which business costs to deduct.
-
Deduct Service/Class/Add-On Cost: Whether to deduct the business cost of services, classes, and add-ons from commission paid to employees.
-
Deduct Product Cost: Whether to deduct the business cost of products from the commission paid to employees.
-
Deduct Discounts: Whether to deduct discounts given at checkout from commission paid to employees.
-
Subtract Membership Discounts from Commission: Whether to deduct discounts from memberships from commission paid to employees.
-
-
Select Save, or Save and Run Payroll if you're ready pay your employees.
Comments
0 comments
Please sign in to leave a comment.