Commission‑based payroll — rules, tiers, daily calculation, settlements

Introduction

Commission payroll in Altegio is designed for appointment‑based teams where revenue can vary by service, staff member, day, or location. Configure rules once, calculate commissions automatically, and close payroll in minutes—while preserving a complete audit trail and dispute‑ready detail.

• Calculate commissions automatically based on services and/or products.
• Tier commissions by turnover, profit, or quantity.
• Pay by day or shift using daily accruals.
• Close payroll quickly with structured settlements and finance entries.

Key references:

• Payroll module
• Daily calculation
• Settlements
• Calculation criteria
• Product overview: Calculation of salaries

What “commission‑based payroll” means in Altegio

A commission plan is a set of rules (criteria → rules → charts) that converts completed work into pay.

• Criteria: Define the metric and scope that trigger different rates (turnover, profit, or quantity; by individual or by location; services and/or products; include/exclude discounts and payments via bonuses/gift cards; period = day or month). See Calculation criteria.
• Rules and charts: Flexible, employee‑linked configuration that applies the right rate automatically; supports bonuses/penalties and priority payments. See Payroll module.
• Source data: Only bookings with the Arrived status are included in payroll settlements; each accrual is drill‑downable to the underlying services/products. See Settlements and Daily calculation.

Typical setup workflow (rules → daily → settlements)

1. Define calculation criteria and tiers

• Choose WHAT to base commissions on (turnover, profit, or quantity), FOR WHOM (individual or location), and FOR WHAT (services/products). Optionally include client discounts and non‑cash instruments (bonuses, gift cards). Configure thresholds for tiered rates. Reference: Calculation criteria.

1. Configure rules/charts and link to staff

• Build calculation charts and link them to employees. Add bonuses, penalties, or priority payments if needed. Reference: Payroll module.

1. Run daily accruals (optional but ideal for shift/day pay)

• Accrue salary by employee per day/shift. Use drill‑downs to see every service rendered and item sold; resolve disputes with itemized proof. Reference: Daily calculation.

1. Generate payroll sheets and pay

• Create payroll sheets for a period; color indicators highlight discrepancies (e.g., changed rules or deleted items). When paying, the system posts to Finance with the correct context. Only Arrived bookings count toward payroll. Reference: Settlements.

Where to configure what (at a glance)

Admin task	Section	Reference
Define metrics, thresholds, inclusions (discounts, bonuses/gift cards)	Payroll → Calculation criteria	Calculation criteria
Build rules, charts; link to staff; bonuses/penalties	Payroll module	Payroll module
Per‑day/shift accruals with drill‑downs	Payroll → Daily calculation	Daily calculation
Period close, discrepancy checks, payment posting	Payroll → Settlements	Settlements

Design patterns for commission tiers

• Turnover tiers: Example—20% up to $X, 25% for the amount exceeding $X, 30% above $Y.
• Profit‑based tiers: Reward high‑margin work by basing tiers on profit rather than revenue.
• Quantity tiers: Pay higher rates after N services (e.g., after 40 haircuts/month).
• Mixed scope: Apply different criteria to services vs products, or individual vs location targets.
• Inclusion logic: Decide whether client discounts or payments via bonuses/gift cards affect tier thresholds (enable/disable in criteria).

Daily calculation for shift/day pay

Daily accruals are purpose‑built for teams paid by shift/day:

• One‑click accruals for all or selected employees; itemized lists of services/products per day.
• Clickable accrual amounts open the detailed breakdown; settlement links jump straight to the payroll sheet. See Daily calculation.

Settlements, payouts, and audit

• Build payroll sheets by employee and period; red/yellow markers flag deleted items or rule changes before payout. Only Arrived bookings are counted. See Settlements.
• When you pay, Altegio creates the financial transaction with the correct employee, account, and timestamp; all operations remain visible in Finance.
• Full settlement history is stored to eliminate duplicate payments and resolve disagreements. See product overview: Calculation of salaries.

Time‑to‑close and performance notes

• Close payroll in minutes: calculating salaries for 15 employees typically takes about 15 minutes when rules are configured. See Calculation of salaries.
• Charts auto‑link to employees; no rework each month. See Payroll module.

Best‑practice checklist

• Start with criteria: pick the business metric (turnover/profit/quantity) that matches your objectives.
• Keep tiers few and meaningful; align with role seniority or service mix.
• Use daily accruals for shift‑based teams; settle weekly/biweekly for cash‑flow predictability.
• Lock rule changes before period end; investigate yellow/red indicators before paying.
• Include/exclude discounts and non‑cash instruments consistently across locations.

FAQ