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Set Up Commission Tracking

Square allows you to assign unique commission rates to each of your team members based on services or items. Note: Commission rates are currently available to Square Appointments, Team Plus, Retail Plus, and Restaurant sellers.

Additionally, all team members can earn a flat commission rate for retail items sold. Control how commission is calculated for your business by choosing which costs are excluded from commission. Easily track and pull reports to view weekly and monthly earnings.

When a team member is assigned to an appointment, they will be attributed to the sale, and receive any commission and tips from that sale. Sales attribution is recorded at the time of sale, and cannot be updated after the transaction is made.

Note: Commission tracking is currently only available from your online Square Dashboard.

Set Up Commission Rates

To set up your commission rates directly from your online Square Dashboard:

  1. Navigate to the Team section.

  2. Click Commissions.

  3. Click Set up service commissions or Set up item commissions.

  4. Select the commission type:

    • None: Team members earn no commission on items.

    • Flat rate per team member: Team members each have one rate across all items.

    • Tiers: Commission rates change based on team member sales.

  5. Click Continue.

  6. Enter the team member's items and services commission rate.

Set Up Commission Calculation

You will be able to control how commission is calculated for your business. This allows you to control which costs are deducted from the sale price before a commission rate is applied.

To do so: 

  1. Visit the Team section of your online Square Dashboard.

  2. Select Commission, and choose the sale price deductions you’d like to apply. Select from:

    • Discounts: (sale price − discounts) × item commission rate

    • Taxes: (sale price – taxes) × item commission rate

    • Processing fees: (sale price – Square payment processing fee) × item commission rate

  3. Click Save.

Reporting

  1. Visit the Reports section of your online Square Dashboard.

  2. Select Team Sales.

  3. Click on a team member's name to view their commissions received per item, and service.

  4. Click Export to download a .CSV file for your team summary and team detail earnings.

Note: If you need to refund a transaction for any reason, any commission earned will not be affected.

Tiered Commission Rates

You can offer your staff tiered commission rates based on a staff member’s sales and services. These tiered commissions are calculated according to a set cadence.

Note: You can only set up tiered commissions from your Square Dashboard at this time.

Review all commissions-related earnings from the section of your online Square Dashboard.

Tier Types

Square offers two types of tiered commissions: 

  1. Value tiers or dollar amount: This type takes into account the total dollar amount of services provided by a staff member.

    For example: Sally performed two haircuts at $50 each. Her commission tiers are calculated based on the $100 she earned. 

  2. Volume tiers or number of services/ items: This second type is based on the total number of services provided or items sold.
    For example: Sally has a haircut and hair colouring with one client and another haircut with a second client. Under this type of tier, her commissions are calculated based on the three performed services.

Commission rates are calculated based on the sales that occur in each tier range.

Here’s an example:

Services Tier 1: 0 - $1,000 with 40% commission rate

Services Tier 2: $1,001+ with 50% commission rate

Sally has $1,500 of services during the weekly pay period.

$1,000 x 40% = $400
$500 x 50% = $250
Total commission pay = $650

Set Up Commission Structure Tiers

  1. From your online Square Dashboard, select Team > Commissions.

  2. Under Commissions on Services or Commissions on Retail Items, select Edit.

  3. Change the commission type to tiers, and select the tier type: total value of items sold or total number of items sold.

  4. Select a tier cadence, which sets the time frame the commissions are calculated in.

  5. Choose your tier start date, which will start the cadence and commission calculations. Commissions will be recalculated if you edit during a pay period.

  6. Enter the values for your tiers. A minimum of two tiers is required, but the last tier only requires you to enter a starting amount.

  7. Check any deductions you would like to exclude from your total before calculating commissions. 

  8. Select Continue.

Set Up Commission Calculation

You will be able to control how commission is calculated for your business. This allows you to control which costs are deducted from the sale price before a commission rate is applied. To do so: 

  1. Visit the Team section of your online Square Dashboard.

  2. Select Commission, and choose the sale price deductions you’d like to apply.

  3. Click Save.

Set up Commission Rates for Team Members

  1. Your Team Members will be listed in the first column and your Commission tier will be across the top.

  2. Input the commission rate each of your team members will receive for each tier.

Note: Estimated commission amounts are based on the commission rate you have assigned to your team members and do not include deductions, withholdings, or taxes that may be applicable. Your team member's actual commission earnings may vary from the estimated amounts shown. Consult your commission plan for final commission earnings calculations.

Updated Team Permissions

Account Owners and anyone with Full Access Permissions will have the ability to create and edit commission tiers.

Team Members with access to Team Management access will have two permissions options:

  1. Manage team members: Allows editing commission rates from a team members profile.

  2. Manage commissions settings & rates for team members across all locations: Allows editing access to commissions tiers and all team members rates.

Reporting

  1. Visit the Reports section of your online Square Dashboard.

  2. Select Team Sales.

  3. Click on a team member's name to view their commissions received per item, and service.

  4. Click Export to download a .CSV file for your team summary and team detail earnings.

Note: If you need to refund a transaction for any reason, any commission earned will not be affected.

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