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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
Community Moderator, Square
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any update on this request?

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Admin

I'm sorry for this late reply @loganlop. I don't have an update for you on this request but I see how being able to apply commission on a service level would be really useful. As soon as we have any updates to share we'll post in this thread. 

️ Helen
Seller Community Manager

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I manage photography sales and I need to track whose pictures have sold, not who sold them.  The best option I found was to utilize the Dining Option tool. (found under items/settings)  You can customize the options and create a custom report that lets you see which persons items were sold and the total sales, but it does not calculate the % they receive from the sale. I'm sure you could easily export the data to a spreadsheet and calculate commission.

 

Unfortunately, you cannot export a custom report, so to export the data, you have to select Item Sales and use Advanced Options -> Display = Dining Option (filter = dining option doesn't give the correct results). The only other problem I have with this, is you can't print the report without expanding all the categories, but it is nice that it shows you the exact items sold under that category. I would prefer the option to print the summary list only. I guess screenshot and print will work for this. 

 

I hope this helps anyone who is struggling to find a solution to track sales with a different category. 

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Yes I agree with this.  Can you guys implement the automatic commission rate for each employee/service?  I would like to be able to assign their commission rate and retail commission rates.  Also maybe be able to set flat rates for certain services.  For example, I offer a Groupon to my clients.  I pay my employee a flat rate for each Groupon vs. a commission.  Instead of going through each transaction and doing my own calculations, it would be nice if the system would automatically track that and we can just run payroll.

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Admin

Appreciate you commenting on this thread @Verdibeauty! I definitely understand how having an automated commission added to Payroll would make things a lot easier at the end of your day. I don't have any updates to share as far as this feature goes, but Sean's Best Answer here explains how you can manually add those commissions in the mean time.

 

We'll keep you and others posted if this ever changes.

nika
Beta Community Manager, Square
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We, as a team, have decided that all eyebrow waxes over the next 6 months will not be paid out commission as we save up to take the whole team to a 3 day class in California. 

 

Intuitively, I assumed I could just go in and turn commissions "off" for eyebrow waxes. However, that's not possible.

 

Is there any way we can assign a blanket commission rate per employee AND have the ability to adjust certain items/services to have their own custom (ie 0%) commission?

 

Thanks

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Square Community Moderator

Hey there, @

 

Welcome back to the Community. 

 

Check out this Best Answer by Valentina with some instructions on how to get your separate commissions set up. 

 

I went ahead and moved your post over to this thread, so you can see some of the other sellers with similar questions. 

Kassi
Community Moderator, Square
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i agree! payroll seems to be set up for 1099s who are hourly or salary (flat rate)... for someone that works on commision such as a barbershop, salon, spa, or tattoo shop. This doesn't help us and requires us to do more work than necessary. 

They should build more add ones fields and allow us to pull from those fields. My last booking application (Booker now owned by Mindbody) allowed us to pay commision and did everything for us. However that app was set up for spas as im finding square payment section is more like for small business restaurants. the booking appointments thing seems to be an add on for cash businesses. 

 

one thing i wish this app would do is take payment from a labtop by clicking on the appointment. you can do it mobile or ipad however doing a mobile app on your phone seems very unprofessional to some degree if charging for high end services. 

 

i hope this all helps on building out more with this app.

 

i also too would like commission or additional fields be add able. 

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I need to be able to pay my contractors by job they complete, NOT by hour.  They don't get paid an hourly rate.  I have a variety of different job types and each week varies based on the the payroll amt. 

 

For example:

 

Contractor A:

20 jobs @ $85/job

4 jobs @ $200/job

Weekly Earnings: $2500

 

Contractor B:

4 jobs @ $100/job

4 jobs @ $195/job

Weekly Earnings: $1180

 

I need a way to edit the time card such that I can create Job Types, not hourly rates.  

 

I currently use Payable, who I have been very happy with, but they have sold out to Stripe and the services I use to track and pay contractors are no longer going to be offered after 2017.

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Admin

This reply was created from merging an existing thread: “Paying Contractors by Job, Not by Hour”

 

Hello @alatka! Thanks for your interest in Square Payroll. I've moved your post here so can see Sean's Best Answer about how to pay contractors. Currently, there isn't a way to enter each job but you could pay them their total weekly earnings using the Amount Column (if set up Payroll to pay contractors the Additional Column shown in the video will actually appear as the Amount Colum).

 

Hope this helps but if you have any other questions please let me know! 

️ Helen
Seller Community Manager

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Please send out a blast update when Square gets with it and allows all of us who need to pay commissioned employees to do thst by simply selecting commission. The software I use now does this already, figures my taxes, the employees pay, allows for invoicing, online payment/scheduling AND is cheaper. I thought I'd just put everything with square because of my capital payment...but no thanks to all the extra work.

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What service do you use? I reallly need commissions calculated. Would love to do everything with square 😞

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I'm new to square and to payroll. can i use their payroll for employees that make commission ?? seems it only offers hourly/salary 

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Square Champion

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Alumni

@rosehg - Welcome to Square! I've moved your post so that other sellers can find this helpful info later on.

 

Let us know if you have any other questions with your new account 🙂

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ok so i get that you can have independant contractor employees, but i dont want thier taxes to be taken out, that is up to them. i just give them a cut of the service provided. is it possible to not have taxes taken out??

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Square Community Moderator

Hi @nat

 

For contractor and 1099 employees, we don't take taxes out. Sellers are responsible for filing taxes at the end of the year and the only time we take taxes out would be for W2 employees.

 

Let me know if this helps and welcome to the Seller Community 👍🏼

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How do I track independent contractor commissions?

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I already have Square register and am looking into addin Square calander and Square payroll. I own a Salon and will need to pay employees commision.

Will the money that each client rings up on Square register link with square payroll? Or will I have to look on dashboard at each employees earnings figure the percent for their commision and type it individually into the payroll screen. Is there anyway to seperate the commision I pay for the Services they did and commision for the Retail they sale?

Or is this program not the best set up to pay hairstylist who are commision?

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I am opening a salon and will be paying my employees commission plus tips. How do i go about setting up this form of payment, instead of hourly/ salary?

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Admin

This reply was created from merging an existing thread: How do I pay my salon employees commission?
 

Hey @organichairlab! I moved your post here so you can see Sean's Best Answer on the first page of this thread to pay your employees commission rather than by the hour/a salary using Square Payroll

️ Helen
Seller Community Manager

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