Commission Importing with Square Payroll
With Square Shifts, you can automatically import your team member’s commissions from your sales into your payroll run. By turning on commission importing, you can automate a part of your payroll process and reduce the need to manually enter wages into your payroll run.
Commission importing works alongside additional features such as importing Square Timecards, tip importing, and Automatic Payroll. Commission wages that are imported into your payroll runs will also appear in your Square Payroll Reports and your team member’s pay stubs.
Turn on Commission Tracking for your Payroll Team
Before running payroll, you’ll need to set up your team with commission tracking and subscribe to Shifts Plus or Team Plus. You can subscribe to Shifts Plus from the Shifts section of your online Square Dashboard.
Learn more about the different ways to setting up commission tracking for your team in our Support Center.
Read more about how to add a W-2 employee to Square Payroll.
Run Payroll with Importing Commissions
To import your team member’s commission wages into your payroll run:
1. Log in to your online Square Payroll Dashboard and click Pay Employees or Pay Contractors from the Payroll Overview tab.
2. On the Hours & Earnings page, click Import time and wages. Commission wages will populate in the Commissions tab for W-2 employees, or in the Amount column for contractors. If you are using Square Timecards, tip importing, or if you require your team to declare cash tips when clocking out or switching jobs, your team member’s hours and tips will also populate into your payroll run. Note that tip importing is only available for W-2 employees at this time.
3. Continue to process your payroll run as you normally would.
Note: Overtime pay and double time pay are calculated for each W-2 employee based on the break and overtime rules you set in your online Square Dashboard at 1.5 or 2x the base hourly rate(s) of pay. Other forms of compensation, including commissions and bonuses, are not automatically included in overtime calculations. If your non-exempt (hourly) employee earns these types of compensation, you may need to manually adjust their pay to meet federal and state wage laws. You should consult federal and local government websites and/or consult with qualified counsel to help you with your compliance obligations regarding overtime calculations.
Learn more about running payroll with Square Payroll.