How can I pay commission based employees?

[Vibebeautyloung]

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

[logancuts]

Again, @Helen, no! We are not aksing how to ADD commission to hourly.  Our employees do not get an hourly rate, they get commission.  If Square Payroll can't do this, then please just say so!!

[Helen]

@logancuts You can pay your commission-based employees using Payroll, even if they don't get an hourly rate. Please call our Payroll team directly and a specialist will be able to able to help you set this up! 

[incitegraphics]

I am interested in upgrading to the employee management option so that I can keep track of our employees commission.  My wife owns a nail salon and she pays her employees on commission.  From my understanding, when adding employees to the system, each employee is assigned a unique number so that they can ring out the client and receive credit.  How does this work considering that we have a receptionist?  Should the reception enter the code on behalf of the employee?  Also, sometimes we have it where two customers come into the salon, for example a mother and daughter.  Two employees work on this transaction, one to service the mom and one to service the daughter.  When it comes time to pay, the mother wants to pay for both services.  Do we have the employee that serviced the mom login to the app to take the transaction and then the other employee do the same for the daughter?   Our current POS allows us to simply drag the name of the employee to the service so that everything is done at the same time so the mother would only have to give her card once.  Please help me with this dilemma.  Thanks!

[VanKalkerFarms]

yes, if the receptionist is ringing up the sale they would have to use the employee's code to ring out so the credit goes to the right employee.

as for multiple customers on different employees commision on one transaction, you would have to run multiple transactions one for each employee that needs credit for the transaction.

[julietpae]

This reply created from merging an existing thread: "How to track commissions?" The author has been notified via email.

We have items entered in squareup.com and can track items sold by an employee. Is there a way to set up a report to give us what their commission should be for the month based on the percentage of sales of select items? Right now every month we have to run an Item Sales report by employee, filter to the products to include, and manually calculate the commission by taking the amount of sales by the percentage. Thank you!

[TriedAndTrue]

In my barbershop I use the time card feature for the hourly receptionists. My barbers are paid commissions. A % on services and another % on products sold. 

I need a way for reception to ring in a haircut, a can of pomade and assign it to a barber. In each barber's employee profile I should be able to assign a % commision for each category of items. So, at the end of payroll I can run a sales report for each employee to see which services they sold and how many as well as products and the amount of credit card tips they recieved. 

Right now my receptionists have to enter each barber's log in number (we have to keep a list of their numbers). This lets me run an "Employee Sales" report so I know who gets what in tips.  Then they select what service the customer got (haircut, etc), then we have a modifer page of each barber's name so reception has to select the barber modifier so I can see who did what service and figure out how much commission I owe them. 

I have to run multiple reports and the checkout process has extra steps that are easy to overlook in order to pull data from Square and enter it in to a spreadsheet I made, just so I can enter the number back in to Square payroll which I have to pay extra for. 

I know I'm not the only commission based business out there using Square. How can we get this started?

[Tom]

Hey @TriedAndTrue welcome to the seller community and thanks for bringing this up!

While we don't have a fully automated item for percent commissions that could be calculated at the time of the sale, a handful of sellers brought up a similar issue in another thread: How can I pay commission based employees? Have a look at Sean's reply and let us know if that helps.

I will be sharing this post with our Product Liaison team and point out how automating these reports would help streamline your workflow and improve efficiency.

Keep in touch for updates and let us know if you have any other questions. Also, if any other sellers have strategies that work well for commission, please feel free to chime in.💈

[TriedAndTrue]

I understad how to pay commissions in payroll. It's just typing the dollar amount in to a colum. The reporting feature would be very helpful but the main thing is the data input of the transaction. 

Being able to assign a transaction to an employee so they get counted for the sale, the item, and their tips are assigned to them. 

Hopefully this is a priority because we are considering other programs as we expand to more locations.

[hundleybk]

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. 

[TriedAndTrue]

Here's the answer:

https://www.sellercommunity.com/t5/General-Discussion/Product-Update-Employee-Management-Use-Open-Ti...

[TriedAndTrue]

This reply was created from merging an existing thread: “Tracking commissions figured out!”. The original author has been notified via email.

I posted a couple of weeks ago asking how to track sales for commissioned emplyees. 

If this sound like the same situation anyone else has, I FOUND THE ANSWER!

However, it doesn't appear that the POS side requires you to assign the sale to an employee so sales can accidentally be reported to whomever is logged in to the tablet.

Question to Square support:

Is there a way to require that a ticket gets assigned to an employee? Right now my recepionist can close out an open ticket wirthout assigning to a barber. This make the service show up in the receptionist's sales report and I don't know who to pay the commission too. I know there will be some tickets missed when we're busy.  

[Russell]

Hey @TriedAndTrue - thanks for sharing this method for handling commissions!

There is not a way to require the app to assign the ticket. This will be something your staff will need to manage. I will definitely share this with our Product Team. In the meantime, this is something that can definitely handled by your staff through training. 

Thanks again for sharing! 

[nichaddock]

This reply created from merging an existing thread: "How to track commissions?" The author has been notified via email.

I own a booth rental salon  All stylist are independent however they sell my retail products.  I need to keep track of who sells what.  they are not employees.  Is there a way to set up different users or would this still be considered employees and cost an additional $5/mo per employee?  I am a very small operation.  I chose your software over another company due to price.  The sales associate told me that I would be able to track sales for each stylist and did not mention any additional fees.  Did I missunderstand her?

[LavishBS]

We are also waiting for the same answer and solution and have previously contacted square about this. As a booth rental salon our stylists are not employees but we do want to pay them commission on product sales only, we expected this to be a simple solution during checkout where you simply enter a commissioned stylist/booth renters name or number and it tracks that person's name/number in a report to calculate sales at the end of the month e.g.

Please square come up with this solution. Our booth renters manage their own appointments so this is not an option for us as they are independent contractors. We just need a simple solution to track sales by name/code during checkout, thank you.

[Joe]

Thanks for adding your voice here in support of this commissions  feature, @LavishBS. While we don't have a shareable timeline for this feature just yet, we will continue to push out relevant details here on this thread as we know them.

Thanks for your patience!

[59Salon]

Did you ever get an answer on your commission calculation question? I too am a booth rental salon and don't have employees. thanks

[Rma1]

I am setting up my employees to get paid commission base only. They will be getting paid two different commision %.

One % per services and a different % for products. Where can i just put these #%s so it is automatically generated for payroll?

Thank you

[katieand]

Hi @Rma1 - I added your question to this thread where @Sean answered your question on page 1. 

[HairaphySB]

No the answer isn’t in the thread you referenced. Square payroll seems to know what over 1,000 people have specifically asked when it comes to commission % to one 1099 contractors individual commissioned based sales vs the company’s overall general sales with no option to separate and generate these numbers without having to do double the payroll work by manually entering them in square vs running a individual’s personal service based sales commission percentage. 

[Guardiax]

Hi. Does Square offer 1099 to pay my contractors per sale? its not salary or hourly. its per sale. % of each sale

[Helen]

This reply was created from merging an existing thread: paying contractor

@Guardiax I added your post to this thread so you can read Sean's Best Answer with the steps to pay commission-based employees with Square Payroll.

I hope this helps but if you're looking for something else it would be great if you could share a bit more information about your business. That will help our Payroll team to understand what you need!