Set up and manage commissions
About commissions
With Square Shifts, you can assign unique commission rates to each of your employees.
You can track three types of commission rates:
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.
Tiered commissions are calculated according to a set cadence. Square offers two types of tiered commissions:
Value tiers or dollar amount: Takes into account the total dollar amount of services provided by a staff member. For example, if a staff member performed two haircuts at $50 each, their commission tiers are calculated based on the $100 she earned.
Volume tiers or number of services/ items: This is based on the total number of services provided or items sold. For example, if a staff member has a haircut and hair coloring with one client and another haircut with a second client, their commissions are calculated based on the three performed services.
When an employee 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.
Square Payroll subscribers can use commission tracking to have your team member’s commissions imported into your payroll run and paid out on their paycheck.
Before you begin
You can set up your commission rates and tracking from your Square Dashboard.
Make sure your team members have Earns commission toggled on in their team member profile. Learn more about how to Add and manage team members.
Estimated commission amounts are based on the commission rate you assigned to your team members and doesn’t include any applicable deductions, withholdings, or taxes. Your employee's actual commission earnings may vary from the estimated amounts shown. Consult your commission plan for final commission earnings calculations.
Set up commission rates for your team
You can set up commission rates from your Square Dashboard.
Sign in to your Square Dashboard and select Staff & payroll > Team > Settings > Commissions.
Select Set up service commissions.
Select the Commission type. If you select Tiers, select if you want to determine tiers by Total value of services sold or Total value of services sold, set your tier cadence, and enter your tiers.
Select the costs to be deducted from a sale period to calculating commission, then select Continue.
Input the commission rates for all team members and select Continue.
Set the effective date. You can also back-date changes if using commission tiers.
Select Save.