My employees will not be hourly- they are commission based. How do I do that in the payroll part of the scheduling app?
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.
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😊
@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!
Hello I pay some of my employees 50% commission and want the taxes taken out and all that good stuff. Not as a contractor but as an employee. Does the Square take care of this.
@doggystyles - I moved your question over to this thread. Check it out to find your answer. 👍
I too have the same ? as doggystyles....
when setting up an employee it only ask if they are hourly or salary. I want to do commission how do i set this up so it know to take taxs and so forth???
@velocitytint77 - Please check out the Best Answer in this thread - it covers this question. 🙂
I have the same issue. I have employees. I want taxes takes out and all the other things that payroll provides. You guys are marketing to Salons and Barbershops. This is how most of us work! How did your developers miss this??? Please tell me you will be adding this soon.
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?
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!
Thank you!
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?
Hmm, might need a little more info, @HairLounge93108. Are you not able to calculate the desired amount and add it to the “Additional” column?
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.
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!
JenVerg
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!
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.
Since you actually market this product to Hair salons...It's definitely a must have. Please consider this ASAP!!!!
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.
Most people on this thread are obviously unaware of employment laws.
any persons paying another person on a regular basis- is not a true independent contractor. If you are a salon paying only a commission to your stylists- they are employees if you write them ongoing checks. They must be paid hourly base, plus commission. (This is California law I cannot speak for other states)
taxes cannot be directly taken out if you are an independent contractor because you are your own business and need to do your own taxes. Any person on a continuous company payroll - is not a TRUE independent contractor . Please see irs website for the factor 20 test.
Square did not “overlook” this, it’s a matter of legality.
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