Entering Commission Setup

Entering Commission Setup

When all the business information on the employee has been entered the next thing to setup is their commission structure.  

The commission structure determines the commission the employee makes on the Service, Retail, and Miscellaneous income that is generated through the Sales Register.  

To edit the commission setup: 

Select Commission/Commission Setup from the Employee menu.  

Field labels: 

Pay Greater of                Check this option only if you pay hourly wages & commission, and that you will like to pay

Wages or system                 whichever is greater.(i.e Wages or Commission)

Commission?

Commission Type                The three different commission types are flat commission,  Sliding Scale based commission and Step Scale based commission. 

Flat Commission Scale

If you want to pay a flat rate of 50% for service income the setup would look like: 

$  0.00    50.0% 

$  0.00    0.0% 

$  0.00    0.0% 

$  0.00    0.0% 

$  0.00    0.0% 

If you want to pay a flat rate of 10% for Retail income the setup would look like: 

$  0.00    10.0% 

$  0.00    0.0% 

$  0.00    0.0% 

$  0.00    0.0% 

$  0.00    0.0% 

Sliding Scale A Sliding Scale commission pay structure  

Commission would give the employee a single percentage of the income generated, depending on where in the scale the income is located. The following is an example of a sliding pay scale for the Service commission. 

The following scale will pay commision on the amount made.

$1000.00    50.0% 

$  500.00    45.0% 

$  200.00    40.0% 

$      0.00    30.0% 

$      0.00      0.0% 

This would give the employee: 

50% if the total is over $1000. 

45% if the total is between $500 and $1000 

40% if the total is between $200 and $500. 

30% if the total is between $0 and $200. 

Step Scale Commission        A Step Scale commission pay structure   gives the employee different percentages of pay for the income generated, depending on                                        where in the scale the income is located. First you will need to select Type 2 . The following is an example of a step pay scale for the                                        Service commission. 

Here is an example of a step scale: 

$ 1000.00    50.0% 

$   500.00    45.0% 

$   200.00    40.0% 

$       0.00     30.0% 

$       0.00       0.0% 

This would give the employee 50% of the service income of the amount over $1000. 

Any amount between $500 and $1000 would pay 45%.  

Any amount between $200 and $500 would pay 40%, and any amount between $0 and $200 would pay 30%. 

This means for an employee that generated $1200 of service income the commission would be as follows: 

50% of $200   (amount over $1000)                  =$100 

45% of $500   (Amount between $500 and $1000)  =$225 

40% of $300   (Amount between $200 and $500)    =$120 

30% of $200   (Amount between $0 and $200)           = $60 

                                                Total    =$505 

  Commission Base                  The commission base determines the base from where the commission calculations start. The minimum amount is calculated by multiplying                                the Daily Average times the number of days worked.

Commission                        This option starts the commission base at  the total commission minus the minimum amount. The Minus Average minimum amount must

                               be reached before any commission calculations start. The commission is calculated only on the amount over the minimum amount. 

Full Commission                Option 2 starts the commission base at the full commission. The minimum amount must be reached before any commission calculations                                        start. The commission is then calculated on the whole commission generated. 

Service Scale                A payment scale for the amount of service income the employee generates. 

Daily Service Average        The minimum daily average Service amount the employee must generate before any commission is calculated. This amount is multiplied                                        by the days worked (entered when the payroll is run) to get a minimum Service amount that must be reached before commissions are                                        calculated. See the Commission Base field for more details. 

Retail Scale                        A payment scale for the amount of Retail income the employee generates. 

Daily Retail Average         The minimum daily average Retail  amount the employee must generate before any commission is calculated. This amount is multiplied by                                the days worked (entered when the payroll is run) to get a minimum Retail amount that must be reached before commissions are calculated.                                See the Commission Base field for more details. 

Retail 2                         A percent commission based on other  retail sales made by the employee.

Commission                        A payment scale for the amount of Miscellaneous income the employee generates.  .

Misc. Scale                        

Daily                                The minimum daily average Miscellaneous amount the employee must  

Miscellaneous                generate before any commission is calculated. This amount is multiplied by the days worked Average (entered when the payroll is run) to                                        get a minimum Miscellaneous amount that must be reached before commissions are calculated. See the Commission Base field for more                                        details.