Labor vs Sales report: How does it work?

[HealthySF9]

How does the Labor and Sales reporting work? 

We have a massage therapy business that pays an hourly rate for "non productive" hours and pay a bigger rate for " productive hours" *in accordance with CA labor law terms  non productive hours is when employees don't have clients or just waiting for the next client, productive hours is when in a treatment session.  How do I set up these two rates in Payroll and how does that factor into the " labor and sales" category? 

[HealthySF9]

[HealthySF9]

As you can see, the labor cost and sales doesn't look right.  Am i setting up something wrong? 

[Helen · Accepted solution]

Hey @HealthySF9 I'm so sorry for the confusion!

If you need to add multiple pay rates for Square Payroll you an do so from the Payroll secion of your online Square Dashboard — this article has step-by-step instructions to add an additional pay rate and to run payroll with mutliple pay rates.

However, if you're using Team Management you also need to add the additional pay rates to a team member's profile from the Team Members section of your Dashboard:

1. Click on a team member's name and then click the three dots in the top right.
2. Click Add Compensation.
3. Add their rate > click Add Another Wage > click Save.

When that information is updated the Labor vs Sales report will accurately reflect the hours worked by your team!

[UrbanShaveSD]

Did you ever figure out the labor vs sales?   I'm having the same question.   Is 50% labor cost a good thing?  at what percentage should labor costs be for profitability.  

[PerkyCup]

Me too!  The report appears to not work.  

[PerkyCup]

My Team is all set up.  I import wages from Homebase with no issue, however, The Sales and Labor report is blank 100%.  Why does this not work?