Configure pay calculationsLast updated on 03/22/2022
Set up how pay rules calculate payroll amounts based on multiple options. You can set flat bonuses, percentages, and sliding scales. Set pay multipliers manually or use custom payroll fields for added flexibility.
Things to know
You configure pay calculations when you set up pay rules for a pay profile.
If you configure a pay calculation and the Continue to Date to Pay On link is not clickable, there may be an error in the pay calculation. Hover over the link to see details about the error.
How pay calculations work
Pay calculations are based on the take, which is an amount or percentage related to the job such as technician split percentage or invoice subtotal. You can add multipliers to use in the pay calculation. Multipliers can be a flat dollar amount, single percentage, or multiple values based on ranges of the take.
Depending on the take type, you can set multipliers based on:
Values you set manually in the pay rule
Custom payroll fields connected to certain record types
Job-related values such as invoice subtotal or commissionable base
Single multipliers
Flat amounts and single percentages can be added as multipliers in a pay calculation. For example, if the take type is Technician Split Rate and you add a multiplier of 5% and a flat amount multiplier based on the invoice subtotal, those two numbers are directly multiplied by the take.
If a technician with a 50% split completes a $2,000 job, their pay is calculated as:
50% * 5% * $2000 = $50
Range multipliers
If the multiplier is based on ranges of values, the take is not used in the pay calculation. Instead, it is used to determine which range to apply. The section name changes from Multiply By to Take Above and Apply To. For example, you create a pay calculation where the take is based on Invoice Subtotal and you add ranges of multipliers where:
$0-$500 = 4%
$500-$1,000 = 5%
$1,000-$999,999 = 6%
If an invoice subtotal is $750, that value is applied to set the multiplier at 5%. To include the invoice subtotal in the pay calculation, click Apply more and add it as a multiplier.
Set the take
After you select the pay type and add any job filters for your pay rule, use the Configure Pay Calculation section to set how the pay amount is determined. Under Take, use the first dropdown to set if you want the take to be based on a flat amount, percentage, or if the pay type is Item Bonus, sold hours.
For Flat $ Amount, use the next dropdown to select what you want to base the take on:
Invoice Subtotal—Sum of all line items including discounts, excluding taxes
Commissionable Base—Invoice subtotal minus any deductions you select:
Material—Material items on the invoice
Equipment—Equipment items on the invoice
Purchase Order—Purchase orders added to the invoice
Non-commissionable items—Pricebook items on the invoice where Pays Commission is deselected in the Commission tab
Labor Costs—Sum of gross pay for all time-based activities, excluding performance pay and payroll adjustments
For % Percentage, select from the following:
Technician Split Rate—Percent of the split assigned to the technician on the invoice
Invoice Discount—Percent discount applied to the invoice Note: Invoice discounts are items added from your pricebook. Member discounts and manual discounts applied to the item price are not included.
Invoice Margin—Percent of the invoice subtotal that comes from income items. Income items are pricebook items linked to an income general ledger (GL) account. Invoice margin is calculated as: [sum of income items] / [sum of invoice items] * 100%
For Sold Hours, select from the following:
Invoice Item Sold Hours—Number of sold hours for the item set in your pricebook
set on Invoice Item—Number of sold hours set in the custom payroll field for the invoice item
Add multipliers
After you set the take for the pay calculation, click Apply more.
From the first dropdown, select a multiplier type. Options vary depending on the take type:
Flat $ Amount—Multiplier is a dollar value
% Percentage—Multiplier is a percentage
$ on Range—Set dollar amount multipliers for different ranges of the take. For example:
$0-$1,000, multiplier = $10
$1,000-$5,000, multiplier = $20
$5,000-$999,999, multiplier = $50
% on Range—Set percent multipliers for different ranges of the take. For example:
$0-$1,000, multiplier = 5%
$1,000-$5,000, multiplier = 6%
$5,000-$999,999, multiplier = 7%
Click the next dropdown to select a data source for the multiplier. Options vary depending on the multiplier type:
set here—Values you enter manually in the pay calculation.
set on [record type]—Use values from a custom payroll field. For example, if you select set on Job Type, the calculation uses values assigned to specific job types.
Technician Split Rate—Percent of the split assigned to the technician on the invoice
Invoice Discount—Percent discount applied to the invoice Note: Invoice discounts are items added from your pricebook. Member discounts and manual discounts applied to the item price are not included.
Invoice Margin—Percent of the invoice subtotal that comes from income items. Income items are pricebook items linked to an income general ledger (GL) account.Invoice margin is calculated as: [sum of income items] / [sum of invoice items] * 100%
Invoice Subtotal—Sum of all line items including discounts, excluding taxes
Invoice Item Total—Invoice item price, excluding taxes
Commissionable Base—Invoice subtotal minus any deductions you select:
Material—Material items on the invoice
Equipment—Equipment items on the invoice
Purchase Order—Purchase orders added to the invoice
Non-commissionable items—Pricebook items on the invoice where Pays Commission is deselected in the Commission tab
If the source is a range, enter ranges of the take and the corresponding multipliers to apply to the pay calculation. Otherwise, skip to the next step:
In the first two fields, enter a range of values.Note: When setting a range starting from 0, make sure you enter 0 in the first field.
In the $ or % field, enter the multiplier you want to use for that range. For example, if the take is Invoice Subtotal and you enter 3% for a range of $0-$100, the multiplier is 3% for all invoice subtotals $100 and under.
Click Add range to set a multiplier for another range of values.Tip: Click Delete
for a range entry to remove it.
Tip: For dollar-based ranges, for the final range, enter 999,999 to cover all dollar amounts.
Click Apply more to add another multiplier or, if you’re finished, click Continue to Pay On.
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.
Disclaimer: Information provided in this article is for informational purposes only and it should not be construed to be legal advice. Information provided in this article may also not constitute the most up-to-date legal or other information. You should not act or refrain from acting on the basis of any information in this article to meet any compliance requirements without seeking independent legal or other professional advice.