Set Up Commissions for Classes

Go to Reports → Employees → Payroll Configuration.

If you subscribe to Vagaro Payroll, ensure your employees have been added to the Payroll tab.

Scroll to the bottom of the screen, and then select the Classes tab. The Tiered Commission by Revenue tab is displayed.

Create and assign each tier.

1. In the Tier 2 heading, enter the minimum amount the employee must reach to achieve that commission tier, which automatically lists the range required for a Tier 1 commission.

2. For each employee, enter an amount, percentage, or flat rate they would receive for each commission tier.

   For example, consider Anna MacKenzie, who taught $3000 worth of classes during the current payroll period. If you set up a Tier 1 commission for her for teaching classes worth between $0.00 and $2499.99 and a Tier 2 commission for teaching classes worth $2500-4999.999, she would receive the Tier 2 commission of 40%. You can add an unlimited number of tiers and assign them to any or all of your employees.

   • To copy the same commission rate amount to other tiers or employees, select the left/right and up/down arrows.

     

   • To delete a tier, hover over it, then select the Delete icon.

3. To define additional tiers, select +Add at the end of the Employee heading, then enter the tier's requirement. Provide a top range for each tier and enter commission percentages per employee. (You can also enter flat commission amounts.)

Select Save.

Go to Reports → Employees → Payroll Configuration.

Select the Classes tab, then select Tiered Commission by Attendees.

Select an option for the types of attendees you'll pay commissions on:

1. Select Check-In or Paid to give a commission to an employee if an attendee has checked in (marked as Show) or has paid for the service or class.

   

2. Select Paid to give commission to an employee only if an attendee is marked as Paid, meaning they have been checked out and paid for the service or class.

   

   If you select Paid and the attendee is marked as "Check-In" but has not yet paid for the class, the employee will not receive a commission.

3. Select Check-In to give commission to an employee if the attendee checked into the class or has been marked as Show.

   

Set the commission for an employee. Let's look at Donna J in the example below. We've entered $5 in the box under No Show. This means Donna will receive 5 dollars if a customer does not attend an appointment or class.

In the next column, we've entered $15 in the box under 1-4 Attendees. This means Donna will earn 15 dollars in commission if at least one client makes it to the appointment or class.

The third column shows the commission for between 5 and 9 attendees.

In this case, Donna will receive 25 dollars in commission if 5 to 9 customers participate in the class, but she will receive 35 dollars in commission once the class capacity reaches 10.

She will receive 60 dollars in commission once the attendee list reaches 20, as we have assigned the 60-dollar commission to 20 or more attendees.

Select Save to save these payroll settings.

ONLY use Save and Run Payroll if you're ready to run the payroll at the same time you save the settings.

Go to Reports → Employees → Payroll Configuration.

Select the Classes tab, then Commission by Class.

Using the drop-down menu, you can select all or specific employees to display on the screen. Select Go to populate the table with your selections.

Select a Class category on the left side of the screen, then enter a commission amount for each employee for each class they teach.

You have the same fill left/right or up/down options as with other commission entry pages.

In the example above, Anna receives $20 for each Custom Spin class she teaches, Bijou receives $25, and Donna makes $10 for each class she teaches.

Select Save.