Overview
A Range Bonus is a performance-based incentive where technicians earn a percentage of the revenue they generate during a pay period. When technicians achieve a specific revenue threshold, they receive a bonus on their commissionable amounts based on the total revenue for that period.
Who uses this feature
Administrators, office employees, managers, accountants
Applies to all business types
Things to know
You can set as many range bonus levels as you like.
The calculation may change based on your account setup, specifically if you have marginal or default range bonuses.
Make sure to check that the Pays Commission option is selected for Pricebook items.
Make sure there are no gaps between range bonuses in Settings > Technicians > Payroll, as this can prevent the bonus from calculating.
If you have Configurable Payroll enabled, the range bonus option will not be visible, as configurable payroll overrides legacy performance pay. Contact your CSM if you are unsure about your payroll settings.
To learn more on performance pay, see Performance Pay overview.
How range bonuses work
Technicians earn a Range Bonus based on the revenue they generate. The bonus percentage is determined by the total Invoice Subtotal for the pay period. Once a technician reaches a revenue threshold, they earn a corresponding bonus on their commissionable amounts.
There are two types of Range Bonus calculations:
Default Range Bonus: A single bonus percentage applied to the entire commissionable amount.
Marginal (Scaffolded) Range Bonus: Different bonus percentages applied to different portions of the revenue.
Note: Marginal (Scaffolded) Range Bonus requires account configuration. Please reach out to your Customer Success Manager (CSM) for details.
Set up range bonuses for technicians
Go to the top toolbar and click Settings
.In the side panel, go to People > Technicians.
On the Technicians screen that opens, click Edit next to the technician you want to set a range bonus for.
Click Payroll.
In the Performance Pay section, click Add range bonus.
From: Enter the starting value of the revenue range.
To: Enter the ending value of the revenue range. This defines the upper limit for the bonus tier.
Bonus % of: Enter the bonus percentage that technicians should earn when their revenue falls within this range.
Tip: Click Delete
to remove the range bonus or click Add range bonus to create additional revenue ranges.
When finished, click Save Changes.
Difference between Marginal and Default Range Bonuses
The key difference between Marginal and Default Range Bonuses is in how the bonus percentages are applied.
Default Range Bonus
In a Default Range Bonus, a single, flat percentage is applied to the entire commissionable amount based on the technician's total revenue for the pay period.
For example:
If the technician's total commissionable revenue is $150 and there are two range bonuses set in their profile:
$0-$100 = 10%
$100-$200 = 20%
The bonus is 20% as 150 is in the 2nd range = $30.
Marginal Range Bonus
In contrast, a Marginal Range Bonus applies different bonus percentages to different portions of the revenue. The bonus is calculated across various revenue tiers, with each tier receiving a separate percentage. Marginal bonuses are calculated at the total revenue level, not for individual invoices.
For example:
If the technician's total commissionable revenue is $150 and there are two range bonuses set in their profile:
$0-$100 = 10%
$100-$200 = 20%
The calculation works as follows:
The first $100 of the $150 falls into the first tier, so the technician earns 10% of $100 = $10.
The remaining $50 falls into the second tier, earning 20% of $50 = $10.
Total Bonus = $10 (from the first tier) + $10 (from the second tier) = $20.
Find Range Bonuses in Payroll (Detail) Report
The Payroll (Detail) Report does not display range bonuses as a separate line item. Instead, range bonuses are incorporated into other fields, depending on how they're applied:
Directly to gross pay for individual invoices: Invoices: GP,
Directly to gross pay based on invoice totals: All Invoices: GP.
Commissionable payroll adjustments: Commissionable Payroll Adjustments: Net $.
Net Commission when calculating total gross pay: Totals: Net Commission.
Calculation: Net Commission = ([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])
Totals: Gross Pay
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.
To learn more on a detailed explanation and breakdown of the Payroll Detail Report, see Key payroll terms on the Payroll (Detail) Report.
FAQ
What happens if a commission falls outside of the range bonus parameters?
Depending on your account settings, the range bonus may generate partially or not at all. To ensure accuracy, make sure there are no gaps in the From and To fields of your range bonus setup.
What's the difference between a Default and a Marginal Range Bonus?
Default Bonus: A single rate is applied to the entire commissionable amount based on the final tier reached.
Marginal Bonus: Different rates are applied incrementally to each revenue tier. For example, if part of the revenue falls in Tier 1, it gets the Tier 1 rate, and the rest is calculated in higher tiers.
Why isn't the Range Bonus showing in the Payroll (Detail) Report?
Make sure the invoices are posted or exported before the bonus can be applied. This ensures the total commissionable revenue is accurately captured and calculated for the entire pay period.
Make sure the Pricebook item has the Pays Commission checked.