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How can I pay commission based employees?

My employees will not be hourly- they are commission based. How do I do that in the payroll part of the scheduling app?

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Best Answer

I wanted to drop in with an update about commissions for everyone here! 💰

We introduced Commission Tracking here back in October, but we recently added some great improvements 

 

You now have the ability to set up tiered commission rates based on team members' sales, set override rules for specific team members. We'll provide step-by-step screens to help you change your commission settings. To get started setting up your new rules, login to your Dashboard, and navigate to Team > Commission. You can learn more about Commission Structure Tiers here, and how to set up Commission Rates here.


Commission Tracking is currently available to Square Appointments, Team Plus, Payroll, Retail Plus, and Restaurant users. When you use Square Payroll, you can use Commission Tracking to have your team member's commissions imported into your payroll run and paid out on their paycheck. 
 

Note: Commission tracking is currently only available from your online Square Dashboard.

 

Valentina
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Thanks Justin!

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Hello I am trying to give commission to my contractor as well as hourly pay and there is no way to do so on my screen.

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Hey @AneashaP - Happy to see your 1st post in the Community 🥳️

 

The video linked in the best answer at the top of this thread should help. You can add the commission totals in the additional field next to the hourly rate and pay columns. 

 

I hope this helps! 

Justin
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I don’t see the video you linked. 

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We have barbers that are strictly on commission and we need an option for selecting a pay type called commission and setting a commission rate - so that when the employee does a sale or a sale is assigned to them, the commission rate shows as labour cost for that transaction and our reporting will be more accurately reflective of labour costs and profit margins.

James Wilkinson
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Unfortunately, we don't offer a commission pay type that will calculate labor costs - only hourly and salary I'm afraid. @JPWilkinson

 

 

Justin
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Is this something you're working on - or no? If no, what POS system should we move to that will allow us to do this - that works with Square?

James Wilkinson
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Any thoughts on this?

James Wilkinson
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Square Community Moderator

Hi there, @JPWilkinson - did you have any specific question in regards to this feature? Was Sean's Best Answer able to assist in answering your inquiry?

Joe
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It's the Best Answer if you use Square Payroll - which we do not. We just need an option added to the employee type - which currently has hourly or salary. Adding "Commission" here would allow in the space below to add the commission rate for that employee - since they only work on commission for any item or service they sell or provide, and that cost would be seen in the labour vs sales cost report.

James Wilkinson
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folks have been asking for a commission-based pay structure solution for over three years.. what are you guys doing to lead the way in this industry? I am a fan of square, and I understand that commissions are generally text differently then hourly or salary wages... But you guys have made it possible for lots of us to go into business for ourselves. We need you to meet or needs in the market place. We need you to lead.

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I agree. I have spoken to many in the massage industry. They won’t switch to Square simply for that exact reason. They are eliminating several industries. We use Booker or Mind Body. They are the leaders in the industry because they have retail and payroll that allows for services that are commission base and figure the tips In separately. Many have said that Square is only used in private events for individual massage therapists but they won’t use it in their businesses where there’s payroll to consider. I don’t subscribe to payroll. I only use it for events away from the office. When I have other massage therapists contracted I use a paper system that I figured out. It’s tedious, but it works. And I only do a couple a year and none this year thus far. I tend to use Schedulicity now. 

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I read through that page and can find no reference to commissions or how to add them.

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Hey @Slingshot!

 

Would you mind taking a look at this thread for suggestions on paying commission based team members/employees? 

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Everyone on my team is setup as commission, including myself. I sold an item to a customer and it shows the sale as  Untracked Team Members" with no person associated with the sale.

 

I had upgraded to team plus specifically so I could track the sales of individual team members, but it doesn't seem to be working

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Hm, that's odd @homesteadcoffee ️ 

 

Were you signed in using your owner passcode when you sold this item?
Do you have employee permissions and passcodes set up?

 

If you haven't already reached out, our team would be better able to dig in with you if you get in touch directly so we can look at your transactions and account set-up with you! When you have a moment, please reach out directly by logging into your Square account and heading here.

 

P.S. Welcome to the Seller Community 

Valentina
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I got it sorted out. Evidently I had to create a salary for each employee of $0.01

 

Once I did that I created a test order and it showed up correctly for sales by team members

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Ah, got it! Thanks for letting us know how you solved this one, @homesteadcoffee

Valentina
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How can I set up commission on a single item category for my employees? I pay them a set commission rate on retail sales they make each pay period.

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Square Community Moderator

Hi @candchair - Thanks for reaching out to us here on the Square Seller Community with your question.

 

I've merged your post to an existing thread where other Square Sellers have asked questions related to commission setup. Specifically, please see the post marked as Best Answer by VALENTINA


I hope this information is helpful but please do let us know if you have any additional questions. Always happy to help!

Violet
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We enabled commission tracking but it works inconsistently. 

 

Some transactions didn't earn any commission, for others only some items earned it. 

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