Commissions on packages

[BSR2021]

I have an employee who gets paid 50% commission when giving massages. We also sell packages of 12 massages. How do I keep him from getting paid commission when the package is sold? He should get paid the commission when each session in the package is redeemed.

If he gets paid commission at the time the package is sold and then quits shortly after that, then I've paid him for work he hasn't performed plus I'd have to pay another therapist to finish the sessions in that package. This is what I'm trying to avoid.

[Katie_SQ]

Thanks for your question @BSR2021! 👋

I've reached out to our Square Appointments Support Team to get some more information on how staff commissions are paid on Packages.

I’ll be back to provide an update as soon as I have more to share with you. 🙂 

[BSR2021]

Thank you.

[javiercarpenter]

• Track Redeemed Sessions: Consider paying a commission on redeemed massages instead of the entire package sale. This incentivizes your employee to complete the service and avoids upfront commission for unperformed work.

• Phased Commission: An alternative could be a phased commission structure. Pay a smaller portion (e.g., 20%) upon package sale and the remaining (e.g., 30%) after a certain number of sessions are completed (e.g., 6 out of 12).

• Contract & Clawback Clause: For larger packages, consider a brief contract with your employee. This could outline commission payout and a clawback clause that allows you to recoup some commission if they leave before completing most sessions

For businesses in the Sunshine Coast area, consider offering Sunshine Coast car coating services as an add-on to massage packages. This can increase revenue and attract a new clientele while providing additional value to your existing customers.

[BSR2021]

How do I pay commission on redeemed massages and not the package? If he sells the package, that sale is credited to him and he'll be paid commission on that. How do I prevent that from happening?

[Katie_SQ]

Hey @BSR2021!

I'm currently waiting for final confirmation on how staff commissions are paid on Packages. In the meantime, as mentioned by @javiercarpenter, you may want to review this Support Center article to explore the available commission options to determine if any adjustments to your current commission structure would be beneficial.

Thanks for your patience! 🙂

[Katie_SQ · Accepted solution]

Thank you for your patience, @BSR2021!

I’ve spoken with our Square Appointments specialists and can confirm that when you sell an Appointments Package, no commission will be paid to your staff when the Package is purchased. The commission will only be paid when the service is redeemed from that Package.

To ensure this is the case for your Packages, you’ll want to have the following commission rates set up:

1. Sign in to your Square Dashboard and select Staff & payroll > Team > Settings > Commissions.
2. Select Set up service commissions.
3. Select the Commission type: Flat rate per team member or Tiers (If you select Tiers, select if you want to determine tiers by Total value of services sold or Total value of services sold, set your tier cadence, and enter your tiers).
4. Select the costs to be deducted from a sale period to calculating commission (make sure Discounts is not selected, all other options are fine to be selected), then press Continue.
5. Input the commission rates for all team members and select Continue.
6. Set the effective date. You can also back-date changes if using commission tiers.
7. Select Save.

I hope this helps! If you have any other questions, please let me know. 🙂