Service Titan Knowledge Base

Key payroll terms on the Payroll (Detail) ReportLast updated on 03/22/2022


Adjustments (Payroll Adjustments)

Payroll adjustments (manual adjustments to the technician’s payroll). You can make positive adjustments (additions) or negative payroll adjustments (deductions). Payroll adjustments can be direct (a flat amount) or commissionable.

Calculation - Payroll adjustments: [Sum of direct payroll adjustment amounts] + [Sum of net amounts of commissionable payroll adjustments] + ([Sum of net amounts of commissionable payroll adjustments] x [Range bonus rate]). Note: If the technician earned a range bonus for the pay period, the range bonus percentage is applied to commissionable payroll adjustments.

Calculation - Direct payroll adjustment: [Payroll adjustment rate] x [Payroll adjustment quantity]

Calculation - Commissionable payroll adjustment: ([Payroll adjustment rate] x [Payroll adjustment quantity] x [Commission rate]) + ([Payroll adjustment rate] x [Payroll adjustment quantity] x [Range bonus rate]). Note: With commissionable payroll adjustments, only the net amount is applied to the technician’s payroll. See the Useful Links below for more info.

Where to find payroll adjustments on the Payroll (Detail) Report: Direct payroll adjustments appear in Direct Payroll Adjustments. Commission-based payroll adjustments appear in Commission Base Payroll Adjustments.

Useful Links


Bonuses (SKU Bonuses)

A SKU bonus is tied to a specific service (invoice SKU item). When a SKU bonus is configured for a specific service, the SKU bonus amount is added to the technician’s gross pay on top of earned commission. If any tasks or services (SKU invoice items) have a bonus configured, the sum of SKU bonus amounts will be shown in the Bonuses field. SKU bonuses may be configured as a flat amount, or as a percentage of the service price.

Calculation - Bonuses: [Sum of flat SKU bonuses for all items on the invoice] + [Sum of percentage SKU bonuses for all items on the invoice]

Calculation - Flat SKU bonus: [Flat SKU Bonus] x [Split %]

Calculation - Percentage SKU bonus: [% Bonus for SKU item] x [SKU item price - Subtotal amount for the invoice item] x [Split %]

Where to find SKU bonuses on the Payroll (Detail) Report: First, you can view the sum of flat and percentage SKU bonuses for individual invoices (Invoices: Bonus). Second, you can view the sum of flat and percentage SKU bonuses for all invoices (All Invoices: Bonuses). Third, you can view the sum of flat and percentage SKU bonuses for the entire pay period (Totals: Bonuses).

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Business Unit Fees

Business unit fees are charged to the technician (not to the customer). Business unit fees are deducted off the top of invoice item prices when calculating Net Service Volume (see Net Service Volume). Business unit fees may be configured as a flat amount, or as a percentage of the invoice subtotal.

Calculation - Flat business unit fee: [-1] x [Flat business unit fee] x [Split %]. Note: Business unit fees display as a debit (negative amount). Technician splits are applied.

Calculation - Business unit fee percentage: [-1] x [Business unit fee percentage] x [Invoice: Subtotal] x [Split %]. Note: Business unit fees display as a debit (negative amount). Technician splits are applied.

Where to find business unit fees on the Payroll (Detail) Report: Business unit fees are included in the calculation for Net Service Volume (see Net Service Volume). The Payroll (Detail) Report does not display business unit fees as a separate figure. Business unit fees are also included in non-commissionable amounts for individual invoices (Invoices: NC Total), and in non-commissionable total amounts for all invoices (All Invoices: Non-Comm).

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Commission Base

The technician’s Commission Base is equal to Net Service Volume, minus job costs (job costs include materials, purchase orders, and non-job purchase orders). The technician’s Commission Base is used to calculate Net Commission (see Net Commission).

Where to find the technician’s commission base on the Payroll (Detail) Report: You can view the technician’s Commission Base in payroll totals (Totals: Commission Base).

Calculation: [Total Net Service Volume] - [Total job costs]

More Detailed Calculation: [Sum of commissionable invoice items for all invoices] - [Total business unit fees] - [Sum of commissionable payroll adjustments paid to other technicians] - [Total job costs]

Useful Links


Gross Pay

The technician’s gross pay is the sum of all commission earned, SKU bonuses, and positive or negative payroll adjustments. The technician’s commission may include service commission (the technician’s commission rate multiplied by commissionable invoice items), range bonuses (designated range bonus rate multiplied by commissionable invoice items), and sales commission (the technician’s sold by rate multiplied by invoice subtotals where the technician was given sold by credit). SKU bonuses may include flat and percentage bonuses configured for invoice items. Payroll adjustments may include direct payroll adjustments and commissionable payroll adjustments.

Calculation - Total gross pay: [Net Commission] + [Bonuses] + [Adjustments]. Note: If the technician earned a range bonus for the pay period, the range bonus percentage is added to Net Commission. If there are commission-based payroll adjustments, you'll see the range bonus applied there as well.

Where to find gross pay on the Payroll (Detail) Report: First, you can view the technician’s gross pay for individual invoices (Invoices: GP). Second, you can view the technician’s gross pay based on invoices only (All Invoices: GP). Third, you can view the technician’s total gross pay for the payroll period, with all non-job purchase orders and adjustments factored in (Totals: Gross Pay).


Job Costs

Job costs include material costs (when material costs are configured as deductible), equipment costs (when the equipment item is configured to pay commission), and purchase orders. You may configure a cost markup percentage, which will increase job costs when calculating payroll. Note: Purchase orders designated as No Charge are not included in job costs. To designate a purchase order as No Charge, click the No Charge checkbox when you add the PO.

Calculation - Total job costs: [-1] x ([[Total amount of materials] + [Total amount of purchase orders]] x [Split %]) + ([[Total amount of materials] + [Total amount of purchase orders]] x [Cost Markup %] x [Split %]). Note: Job costs display as a debit (negative amount). Technician splits are applied.

Where to find job costs on the Payroll (Detail) Report: Job costs are displayed at three levels on the Payroll (Detail) Report. First, you can view job costs for individual invoices (Invoices: Cost). Second, you can view a sum of job costs for all invoices (All Invoices: Cost). Third, you can view total job costs for the payroll period, with all non-job purchase orders included (non-job purchase orders are not included in job costs at the invoice level).

Useful Links


Net Commission

Sum of service commission (commission base multiplied by commission rate), designated range bonus (commission base multiplied by range bonus rate), and sales commission (invoice subtotals where the technician earned sold by credit, multiplied by sold by rate).

Calculation: ([Commission base] x [Commission rate]) + ([Commission base] x [Range bonus rate]) + ([Sum of invoice subtotals where the technician earned sold by credit] x [Sold by rate])

More Detailed Calculation: ([Net Service Volume] - [Total Costs]) x [Commission rate]) + ([Net Service Volume] - [Total Costs]) x [Range bonus rate]) + ([Sum of invoice subtotals where the technician earned sold by credit] x [Sold by rate])

Even More Detailed Calculation: (([Sum of commissionable invoice items] - [Business unit fees] - [Sum of commissionable payroll adjustments paid to other technicians]) - [Total Costs]) x [Commission rate]) + (([Sum of commissionable invoice items] - [Business unit fees] - [Sum of commissionable payroll adjustments paid to other technicians]) - [Total Costs]) x [Range bonus rate]) + ([Sum of invoice subtotals where the technician earned sold by credit] x [Sold by rate])

Where to find net commission on the Payroll (Detail) Report: You can view the technician’s net commission in payroll totals (Totals: Net Commission).

Useful Links


Net Service Volume

Net Service Volume is the sum of all commissionable invoice items, minus business unit fees and labor costs that count against the technician’s commission (commissionable payroll adjustments paid to other technicians).

Calculation - Net Service Volume: ([Subtotal of commissionable invoice items] x [Split %]) - ([Business unit fees for all invoice items] x [Split %]) - [Sum of commissionable payroll adjustments entered for other technicians]. Note: If the technician earned sales commission (the Split % is designated as SB), the invoice is not included in Net Service Volume. Business unit fees apply both to commissionable and non-commissionable invoice items. Technician splits are applied.

Where to find net service volume on the Payroll (Detail) Report: You can view the technician’s net service volume in payroll totals (Totals: Net Service Volume).

Useful Links


Range Bonuses

Range bonuses are incentive bonuses paid to the technician for meeting designated revenue goals. If the technician earned a range bonus for the pay period, the range bonus percentage is added directly to gross pay at the invoice level, and to Net Commission for the entire pay period. The range bonus percentage is also applied to commissionable payroll adjustments.

Calculation - How the range bonus percentage is determined: The range bonus percentage to be applied within any given pay period is determined by the Invoice Subtotal for the entire pay period.

Alternative - Marginal Range Bonuses: Your ServiceTitan account can be configured to calculate range bonuses at marginal (scaffolded) levels. This means that the range bonus will no longer be applied as a single, flat percentage. For example, if you apply a 5% range bonus for sales between $0 to $500, and a 7% range bonus for sales between $501 to $1000, the 5% bonus will always be applied to the first $500, and the 7% bonus will be applied only to the amount that exceeds $501 up to $1000. For more information about this configuration, refer to Apply Marginal Range Bonuses When Calculating Payroll.

Where to find range bonuses on the Payroll (Detail) Report: The Payroll (Detail) Report does not display range bonuses as a separate figure. Range bonuses are added directly to gross pay for individual invoices (Invoices: GP), and directly to gross pay based on invoice totals (All Invoices: GP). Range bonuses are added to Net Commission when calculating total gross pay (Totals: Net Commission). Range bonuses are also added to commissionable payroll adjustments (Commissionable Payroll Adjustments: Amount).

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Technician Splits

The technician’s split is the percentage of the job credited to the technician, and it is used to calculate the technician’s gross pay. If there is only one technician on a job, the Split % for the technician is 100%. If multiple technicians are assigned to the same job, you may distribute the split evenly (for example, 50%-50% for two technicians), or you may designate a custom split (for example, 60%-40% for two technicians). Note: The sum of split percentages for all technicians assigned to a job must be equal to 100%.

Where to find technician splits on the Payroll (Detail) Report: The technician’s split rate on individual invoices is available in Invoices: Split %. (see Explanation of Invoices Columns section below). Many calculations on the Payroll (Detail) Report factor in technician splits (technician splits are noted throughout this report guide).

Note: Technician splits are accounted for in Net Service Volume, Job Costs, Business Unit Fees, Bonuses, and Net Commission when calculating the technician’s gross pay.

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Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.