Commission Plans & Payroll Guide

Commission Plans & Payroll Guide Detailed Overview of The Reports in The Envision Software

I Commission Plans & Payroll Guide Table of Contents Part I Introduction 1 Part II Commission Plan List 1 1 Edit Service Commission Plan... 1 2 Edit Retail Commission Plan... 5 Part III Assign a Commission Plan to Employees 6 Part IV Clocking In/Out 7 Part V Set Commission Overrides 8 Part VI Set Overhead Costs 9 Part VII Payroll Reports 10 1 Payroll Calculations... 10 2 Commission Overrides... 11 3 Commission Detail... 12

Introduction 1 Introduction Creating commission plans allows you to run a payroll that calculates the gross amount that employees earn based on services performed, retail products sold, or both. A commission plan can be created for each payment structure that your business offers. Once created, these commission plans are assigned to employees. Commission Plan List To enter the Commission Plan list, click Employees from the Tool bar and select Commission Plans from the drop down. Edit Service Commission Plan You can create and apply commission plans to employees based on a straight scale, sliding scale, or average sales amount. Once commission plans are created here, they will need to be entered on the employee profile.

2 Commission Plans & Payroll Guide Description Enter a name for this plan. The name can be specific to the type of plan that you are creating. You can enter an easy to recognize name in this field. This will allow you to easily select the correct plan for the employee. Service Plan Tab and Retail Plan Tab You can create a plan for service commission, retail commission, or both. Each can use an individual plan type (Services can be calculated on a straight scale, Retail can be calculated on a sliding scale on the same plan). Plan Type There are three choices available to select from. How these Plan Types are used is explained below: Straight Scale Commission This method takes the total sales of an employee (Retail and/or Service, depending on which tab you set up) and locates the amount on one of the 10 levels. The percent for that level is then multiplied by the total sales amount. You may use as many (up to 10) or as few levels as you wish. The FROM and TO will dictate the dollar range of sales. It is recommended that you set your ending level (TO) to an unreachable amount (see below screen shot for example). The Rate dictates the percentage used. EXAMPLE: Using the shown sample screen below, if an employee on this plan generated $625 in sales it would place them in the Level 3 range. When the commission report is run, the system will multiply $600 by 50% to solve for the commission amount.

Commission Plan List 3 Sliding Scale Commission This method allows you to pay different commission percentages based on a tiered structure of total sales (Retail and/or Service, depending on which tab you set up). You may use as many (up to 10) or as few levels as you wish. The FROM and TO will dictate the dollar range of sales. It is recommended that you set your ending level (TO) to an unreachable amount. The Rate dictates the percentage used. EXAMPLE: Using the sample screen below, the employee would receive 25% for the first $500 earned, 50% on the next $500 earned, 75% on the next $500 earned, and capping at 80% for all sales past $2,000. So if then employee sold $1,525.00 in services, each level range would multiply their totals by the percent assigned and then add the totals together, resulting in a commission of $893.75. Average Service Scale This method takes the average service sale amount of an employee and locates the amount on one of the 10 levels. The percent for that level is then multiplied by the total sales amount to calculate commission. You may use as many (up to 10) or as few levels as you wish. The FROM and TO will dictate the dollar range of sales. It is recommended that you set your ending level (TO) to an unreachable amount. The Rate dictates the percentage used. EXAMPLE: Using the shown sample screen below, if an employee's average service sale amount on this plan was $52.21, it would place them in the Level 3 range. When the commission report is run, the system will multiply the total service sales by 46% to solve for the commission amount.

4 Commission Plans & Payroll Guide Flat Charge Per Service Enter here a dollar amount to deduct from the employee commission. Percentage Service Charge Enter a percentage amount to deduct from the employee commission. Subtract Commission Charge Before / After Commission Calculation Select from these options to deduct the designated overhead amount before or after commissions are calculated. For example, if you have an item that sells for $100 set with a $10 overhead and you choose to Subtract Commission Charge Before Commission Calculation, the employee's commission percentage will be calculated on $90. If you have an item that sells for $100 set with a $10 overhead and you choose to Subtract Commission Charge After Commission Calculation, the employee's commission percentage will be calculated on $100, but the overhead amount will be taken from the employee's commission amount. This results in lower pay for the employee. Limit Service Charge to One Per Service Client Per Day Selecting this option will only deduct a single service charge per client, no matter the number of services the client has done. This option only applies to the Flat Charge Per Service. Include Service Overhead Costs or Deductions Check this box to include any overhead costs that were set on the individual service profiles. Keep this box unchecked for commission plans that will be applied to employees who will not be charged overhead costs. Commission Plan Levels There are 10 levels provided. You may use these levels to pay an increasing commission percentage, determined by the amount of sales. How the program uses this table is determined by the "Plan Type" you select. The FROM and TO will dictate the dollar range of sales. It is recommended that you set your ending level (TO) to an unreachable amount (EXAMPLE: 99,999,999). The Rate dictates the percentage used. Note: If you do not want to use these levels, place a zero or starting amount for commission in the "From" field of the Level 1 column and a very high amount (like, 99999999) in the "To " field and then set the percentage in the last field. For example, if you pay a 7% commission on all sales above $250, place $250 in Level 1's "From" field, $9,999,999 in the "To" field and 7 in the "Rate" field.

Commission Plan List 5 Edit Retail Commission Plan A retail commission plan may be part of commissions earned, and is set the same way on the retail plan tab. The available options are Straight Scale, Sliding Scale or RTS. Straight and sliding scale calculations are performed the same way for retail commission as for service commission. RTS RTS stands for "Retail to Service", and denotes a percentage amount. This can be calculated by dividing the Retail Sales dollar amount by the Service Sales dollar amount.

6 Commission Plans & Payroll Guide Assign a Commission Plan to Employees Commission plans must be assigned to employees in order to calculate commissions earned. Select a Commission Plan here after one has been created in the Commission Plans list. The assigned commission plan is where the commission percent and settings are stored for the selected employee. Enter an Hourly Wage if the employee has an hourly dollar amount they earn. Employee hours are calculated on when they clock in and out. The amount entered here can be calculated against the employee's clocked time with payroll. Select the Pay Greater of Wages or Commissions box if you wish the program to determine employee pay based on hourly wage versus the commission plan earnings. Selecting this option will designate to pay whichever amount is greater.

Clocking In/Out Clocking In/Out The Time Clock can be a valuable management tool. Even employees that are not "On the Clock" will have requirements for attendance. The hours recorded when each employee Clocks In and Clocks Out here will be available for payroll. The Time Clock can be reached by clicking on Employees on the Tool Bar and selecting Clock In/ Out from the drop down. Time Clock Employee Login & Password Employees will use the email login and password they use to log in and out of Envision Cloud (The drop down can be used to select the employee login). Time Clock Clock In / Clock Out After entering their Employee ID and Password, employees will click either of these buttons to clock in or out. They cannot perform illogical operations. For example, if they clocked in yesterday but never clocked out, they can't clock in again until they clock out from yesterday. Clock in and clock out times and dates may be adjusted in the Manage Time Card Records screen. 7

8 Commission Plans & Payroll Guide Set Commission Overrides Commission overrides may be entered on retail products or services. Check the box to Enable Commission Override if you would like to override the commission percentage an employee is paid for selling this product. Enter the dollar amount in the field that employees selling this item will make. This will override any commission percentages you have setup in your commission plans.

Set Commission Overrides Set Overhead Costs Overhead costs may be entered on services. Enter a Fixed Overhead Cost if you wish to deduct that amount from the sales total. This deduction will apply either before or after commissions are calculated for employees. 9

10 Commission Plans & Payroll Guide Payroll Reports Payroll Calculations This report will calculate the payroll for employees based on their hours worked and/or commission plan. This report will be impacted by employee clock-in and clock-out, the commission plan set up and commission overrides entered on inventory items. Options Include: o Date Range Selection o All or Single Employee o All or Single Employee Department o Option to Show Tips o Option to Include Tips in Total o Company Selection (For multi-location businesses) This report displays the following information: o Employee Name o Service Commissionable Total o Service Override Total o Service Charge Total o Service Commission Total o Retail Commissionable Total o Retail Override Total o Retail Commission Total o Commission Total o Hours Worked o Hourly Rate o Hourly Pay Earned o Total Earned Report Example:

Payroll Reports Commission Overrides This report shows any commission overrides as entered on inventory items' profiles. Options Include: o Date Range Selection o All or Single Employee o All or Single Employee Department This report displays the following information: o Ticket Number o Date o Employee ID o Item ID o Unit Price o Quantity o Extended Price o Override Amount Report Example: 11

12 Commission Plans & Payroll Guide Commission Detail This report shows any commission or override as entered for the sold items, per employee. This report also displays the overhead deduction amounts per employee. Options Include: o Date Range Selection o All or Single Employee o All or Single Employee Department o Company Selection (For multi-location businesses) This report displays the following information: o Employee Name o Total Commissionable Sales o Retail Commissionable Total o Service Commissionable Total o Retail to Service Percentage o Service Commission Total o Commission Total o Commission Override Total o Deductions o Commission Due o Item Type o Date o Item ID o Ticket Number o Commissionable Sale Amount o Sales Override Amount o Commission Override o Overhead Deduction Report Example: