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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Message 1 of 87
1 Best Answer
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.


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Message 87 of 87

You can add their commission amount to the “Additional” column in "Run Payroll" tab of the Payroll section of your Square Dashboard.

This field allows you to put in a dollar amount to send to your employees in place of, or in addition to, their hourly salary. 👍


Have a look at this video tutorial for step-by-steps on adding commissions to the "Additional" column.



PS - If my answer solved your problem, would you mind marking it as "Best Answer"? That'll help the rest of the community find what they're looking for. If not, just write back, and I'll continue to help. Thanks!

Product Manager | Square, Inc.
Message 2 of 87

Thank you Sean... That's awesome. I am a new salon owner and new to the square so this information helped me tremendously... Thank you thank you thank you😊

Message 3 of 87

@Vibebeautyloung - Happy to help, and please keep the posts coming. 😀  If you have a question, most likely someone else will have the same one at some point! 

Product Manager | Square, Inc.
Message 4 of 87

Payroll isn't available in Oklahoma yet, is there a way I can do this with out using payroll? I need to be able to accept my trainee's payments, but get them to her. Also, I use the capital program, how does that work for accepting employee payments?

Message 5 of 87

I'm afraid your commissions will need to be managed outside of Square, @malbake.


In regards to your Capital repayments, they come from a fixed percentage of your daily credit card sales, so regardless of the employee, the payment will be based on the gross amount processed through your account. Hope that helps clarify!

Message 6 of 87

Thank you!



Message 7 of 87

I'm a salon owner and have an employee that works the desk and takes clients. She's paid hourly and commission for the the walk-in clients during her work hours. I've "categorized' the "salon services" and take payment at the desk. How do I (or can I) add the "services" she does in her payroll on a comission (50%) basis?

Message 8 of 87

Hmm, might need a little more info, @HairLounge93108. Are you not able to calculate the desired amount and add it to the “Additional” column?

Message 9 of 87

It would be nice to assign a service to a specific employee and then have that calculated and automatically pay their 50% commission without needing to figure that seperately.  Something to consider in future developments. Salons and spa employees are generally independent contractors and get paid a commisssion/percentage of the service they do. If you plan on doing payroll please consider these in your options. Also, when reatail is in the spa environment the "employee" generally recieves a 5-10% commission on retail sales as well. 

Message 10 of 87

I agree wiith @Scogginsunl. Applying commissions at the service level would be beneficial for independant contractors but if they sell products or goods during that service they normally recieve receive commisions for those sales also.


Doesn't appear Square handles transactions at this level currenty. Are comissions at the service level transactions or for retail sales something that is being looked at by the payroll team? If so is it a top priority or low hanging fruit?


Just trying to gain some perspective because these are important features for salon owners.


Make it a great day!





Message 11 of 87

Hey @JenVerg and @Scogginsunl — thanks for bringing this up. I don't have any updates for this on hand but I'm going to run your posts by our Payroll Team. We'll circle back with any other available information.


In the meantime, if any other sellers have any pro-tips on what's worked well — feel free to chime in!

Tom [he/him/his]
Seller Community Manager | Square, Inc.
Find step-by-step help in our Support Center
Message 12 of 87

Update: I was able to touch base with a member of our Payroll Team and we don't have a workaround or timeline available for applying commissions for contracted employees at the service level. I'm sorry for any inconvenience — we will continue to track this request.


You can also have a look at our partners to see if they offer a solution. Head over to your Apps tab > Employee Management to view a list of available services.

Tom [he/him/his]
Seller Community Manager | Square, Inc.
Find step-by-step help in our Support Center
Message 13 of 87

Since you actually market this product to Hair salons...It's definitely a must have. Please consider this ASAP!!!!

Message 14 of 87

Thanks for sharing your interest in this feature @StudioB776


If anything changes with this we'll post an update, as it seems to be pretty important for salon owners and is gaining some momentum within the Seller Community. 

Message 15 of 87

any update on this request?

Message 16 of 87

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. 

Seller Community Manager, Square
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Message 17 of 87

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. 

Message 18 of 87

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.

Message 19 of 87
Square Community Moderator

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.

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Message 20 of 87

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. 

Message 21 of 87