How can I pay commission based employees?

Vibebeautyloung · ‎07-07-2016

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

Valentina · ‎05-04-2021

Hi there! You can pay commission-based team members using Commission Tracking with Square Payroll.

To get started, sign in to your Square Dashboard and go to Staff > Settings > Commissions. You can set a flat rate for each team member or tiered rates based on sales, choose any costs to deduct before commission is calculated, and set an effective date. Make sure Earns commission is turned on in each team member's profile, and assign the right team member to each appointment or sale before checkout. Learn more about setting up commissions here.

When you run payroll, select Import time and wages to bring each team member's commissions into the payroll run, so they're paid out on their paycheck. You can also enter commissions manually.

Commission Tracking is available with Square Shifts Plus and the Premium plans for Appointments, Retail and Restaurants.

Note: Commission rules can only be set up from your online Square Dashboard.

Valentina
Community Moderator, Square
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BarnethAir · ‎01-29-2023

I need to track my independent stylists sales. They do not use the appointments calendar so I dont want to pay for Team Plus. Can i track their sales through the POS app?

Looking back, this question has been asked many times but still no solution?

_Violet · ‎01-31-2023

Hi @BarnethAir - Thanks for reaching out to us here on the Square Seller Community👋😊

Unfortunately, Sales reporting by team member isn't available on the free version of Team Management. If you’re subscribed to Team Plus, the Team Sales Report will show sales per employee, tips, average sale size, and revenue per labor hour. If you're interested, you can start a 30-day free trial of Team Plus.

If you have Square Appointments Plus, you have access to Appointments Reporting, which includes the Team Performance report.

The Team Performance Report allows you to:

Measure your team member or business performance, whether you manage a team or you’re a sole proprietor.
See real-time performance metrics for retention and pre-booking, based on appointments data (not based on sales).

I hope this information is helpful but please do let me know if you have any additional questions.

Violet
Community Moderator, Square
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savasbeth · ‎04-03-2023

I currently use Square Payroll but a different POS system. Is it possible to import sales from Excel and payout commission with taxes taken in Square?

_Violet · ‎04-05-2023

Hi @savasbeth - I see this is your first post in the Seller Community so I'd like to officially welcome you! 🎉👏

I reached out to the Square Payroll Team on this one. They've let me know that "This is not possible. The ER can manually add commissions into a pay run, but we're not able to import sales and commission data from a third party."

Although this feature isn’t currently available with Square, it’s a great idea and I can see how it would be beneficial to your business. I’ve shared your feature request with our Product Team, as they are constantly improving our products based on feedback like this. To learn more about how feature requests work, please see this post from one of our Seller Community Moderators.

In the meantime, keep an eye out for any updates in our Seller Community. We appreciate your input! 🙂

Violet
Community Moderator, Square
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savasbeth · ‎04-05-2023

Thanks for the welcome! When I enter the commission payment into Square, how do I do that in order to get taxes taken?

Arie · ‎04-05-2023

If you're using Square Payroll, you'll want to import your commissions following this guide @savasbeth. Square Payroll makes separate debits for taxes based on the tax due date in specific jurisdictions and this article gives you a more detailed breakdown of how taxes, and payroll work.