MyTime provides various options for compensating your staff members for the services they perform. These include paying a straight percentage, a flat amount, tiered commissions based on revenue or productivity, or compensation per service.
Things to Know:
- Straight Commission: You can pay staff a straight percentage commission or a flat commission per service.
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Tiered commission by revenue: The commission is calculated based on All Revenue Earned or Amount Above Earned. You can set the base rate on which the commission is paid for the first tier and then add as many tiers as you like.
Amount Above Earned - This setting applies a tiered commission for each revenue threshold reached. The commission is calculated by subtracting the tier threshold from the revenue and multiplying the difference by the tier percentage (revenue - tier threshold x tier % ).
All Revenue Earned - This setting applies a single tier, corresponding to the total revenue. The commission is calculated by multiplying the total revenue by the tier percentage (total revenue x tier %).
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Tiered commission by productivity: The commission is calculated based on All Revenue Earned or Amount Above Earned.
- Amount Above Tier - This setting applies an incremental commission for each productivity threshold achieved. The commission will be calculated as (productivity - tier threshold) x tier % x clocked hours.
- All Revenue Earned - This setting applies only one tier, the one that matches the overall productivity. The commission will be calculated as productivity x tier % x clocked hours.
- If you set the service commission per service, it takes precedence over what you set on the main screen.
If a staff member's commission structure is updated midweek, the changes will apply to the current and future pay cycles in compensation reports, but previous payments will remain unchanged. For example: If a staff member's commission structure for Tiered Commission by Revenue was set to pay 10% for revenue above $300 and is updated on a Tuesday to 15%, the new commission rate will be reflected in the compensation reports for the current and all future pay cycles.
You also have the option to apply the updated rate to past appointments and purchases, but only if the compensation type is set to Straight Commission. In this case, historical compensation will be recalculated, which may take several hours depending on the volume of data.
Contents:
Setup Commission
Straight Commission for Services
Tiered Commission by Revenue
Tiered Commission by Productivity
Compensation by Service
Setup Commission
To setup compensation for services:
- Navigate to Location Setup > Staff & Availability
- Filter by the desired location
- Select the staff member's profile
- Scroll down to the Compensation Reporting > Service Commission section
Straight Commission for Services
Setup:
Straight Commission: Percentage
Service Value: $150
Commission Value: 30% per service
Total Commission: $45 ($150x30%)
Straight Commission: Flat Amount
Service 1 Value: $100
Service 2 Value: $130
Commission Value: $20 per service
Total Commission: $40
Tiered Commission by Revenue
Pay Cycle: Weekly
Staff Member: Laura Green
Service Revenue: $1,100
Commission Tiers:
- Tier 1: $0 - $1000 per pay cycle, then pay 25% of the revenue earned
- Tier 2: $1000.01 - $3000 per pay cycle, then pay 30% of the revenue earned
- Tier 3: $3000.01 and above per pay cycle, then pay 40% of the revenue earned
If Tiered Commission by Revenue: Amount Above Earned is selected, the total compensation for this staff member will be calculated as follows:
1st tier:
Revenue = $1000
Commission = $1000 x 25% = $250
2nd tier:
Revenue = $99.99
Commission = $99.99 x 30% = $30
Total Commission:
$250 + $30 = $280
If Tiered Commission by Revenue: All Revenue Earned is selected, the total compensation for this staff member will be calculated as follows:
$1,100 × 30% = $330
So, the total commission is $330.
Tiered Commission by Productivity
Setup:
Pay Cycle: Weekly
Staff: Kelly Brown
Clocked Hours: 5
Service Revenue: $450
Service Productivity - $450 / 5 = $90
Commission Tiers
Above $0 per pay cycle, then pay 10%
Above $30 per pay cycle, then pay 20%
Above $60 per pay cycle, then pay 40%
If Tiered Commission by Productivity: Amount Above Earned is selected, the total compensation for this staff member will be calculated as follows:
(Productivity − Tier Threshold) × Tier Percentage × Clocked Hours
Given:
Productivity = $90
Tier Threshold = $60
Tier Percentage = 0.4
Clocked Hours = 5
The calculation is:
($90 − $60) × 0.4 ×5
($30 × 0.4) × 5
$12 × 5 = $60
So, the staff member's total compensation is $60.
If Tiered Commission by Productivity: All Revenue Earned is selected, the total compensation for this staff member will be calculated as follows:
Productivity × Tier Percentage × Clocked Hours
Given:
Productivity = $90
Tier Percentage = 0.4
Clocked Hours = 5
The calculation is:
($90 × 0.4) × 5
$36 × 5 = $180
So, the staff member's total compensation is $180.
Compensation by Service
To set compensation by service:
- Select the "set compensation by service" hyperlink
- A modal will open where you can enter the amount the staff member should be paid per service
- Save
Compensation by service setup:
Swedish Massage: 10% commission
Gel Manicure: $15 flat commission
Example:
If a client schedules an appointment for a Swedish massage valued at $180 and a gel manicure valued at $100, the staff member will earn a total of $33 in commission. The commission is calculated as follows:
Swedish Massage: $180 x 10% = $18
Gel Manicure: $15 flat commission
Total Commission: $18 + $15 = $33
For more information, contact support@mytime.com.
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