Role-based, hourly pay lets employers assign pay rates for different job types based on their responsibilities, such as receptionist, stylist, massage therapist, trainer, or instructor. Employees can track their hours worked by manually clocking in to and out of Vagaro on the web, swiping their employee card in the card reader, or scanning their QR code with the QR scanner, Pay Desk, or PayPro. Managers can view time card entries and track employee hours by running the Time Card report.
When employees clock in, they can select a role specific to their job duties and responsibilities. After clocking out, the employee's pay is automatically calculated based on the hourly rate assigned to the employee for that role. Role-based hourly pay can also help manage labor costs and budgeting, as employers can adjust pay rates for different roles and employees as needed to control expenses. Additionally, it can provide career progression and incentives for employees to develop new skills and take on additional responsibilities to earn higher pay rates. Employees can be paid for multiple roles, but they can only clock in to perform one role at a time.
Tip
Hourly employees are also eligible to earn commissions on services, classes, and products, but if you'd prefer to pay only one or the other, you can toggle on Only Pay Hourly Rate or Commission (Whichever is Larger) on the Payroll Configuration screen. This switch allows only the larger of their commission amount or total hourly pay for all or specific hourly pay rates. For example, if an employee worked 30 hours at $15/hr during a weekly pay period ($450 total) and also earned $1000 in commissions, you can choose to pay only the $1000 commission because it is more than the regular wages earned.
With Vagaro Payroll, you can also select whether to withhold PTO if the commission is greater than the total number of hours worked and their PTO balance, or to always give PTO in addition to the greater of their commission earned or total hourly pay. In the same example above, you can choose to withhold paying the employee's PTO because the earned commission is more than what would be earned during PTO.
Important
We are not responsible for determining your employee's overtime hours based on the hours worked. This is because overtime occurs after hours worked in a day or total hours worked in a week. Not all calendar months have the same number of weeks or days in them; therefore, we cannot calculate hours and overtime hours worked for these odd months.
Prerequisites: This feature is available for all Vagaro businesses. At least one employee profile must already be added and your Payroll Configuration must already be set up. In the US, Vagaro Payroll is recommended to pay your employees by direct deposit and withhold their income taxes.
To set up hourly pay rates:
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Go to → → .
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If you subscribe to Vagaro Payroll, ensure your employees have been added to the Payroll tab.
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Select the Hourly Pay tab. Any pay rates that you already set up are now called Hourly Pay Rate. You can leave the current name or change it.
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In the Employee row, select +Add.
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Enter a Role Name and Hourly Pay Rate for each applicable employee.
If you assign an employee a pay rate of $0.00, they won't be able to clock in for that role; therefore, you need to ensure that employees do not have a pay rate assigned for a role they are not qualified for.
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Optionally, toggle on the Only Pay Hourly Rate or Commission (Whichever is Larger) switch, then select an option:
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Apply to all hourly pay rates: If the commission earned during a pay period exceeds the total hourly pay, then only the commission will be paid. If the total hourly pay during a pay period exceeds the commission earned, then only the hourly pay will be paid.
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Apply to specific pay rates: Whether only Select Pay Rates (created on the Hourly Pay tab) in the list will be paid the larger of earnings by their hourly rate or commissions.
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Paid Time Off (Vagaro Payroll only): Whether to withhold PTO if the commission is greater than the total number of hours worked and their PTO balance, or to always give PTO in addition to the greater of their commission earned or total hourly pay. In the same example above, you can choose to withhold paying the employee's PTO because the earned commission is more than what would be earned during PTO
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PTO will not be paid if the commission is greater than the combined total of hours worked and the PTO balance.
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The employee will always receive PTO in addition to the larger of their commission earned or total hourly pay.
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Select Save.
Important
ONLY use Save and Run Payroll if you're ready to run the payroll at the same time you save the settings.
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