Setting Commission Levels

You can set commission levels for service provider salespeople that earn commissions based on client activity using the Commission Maintenance form.

You can enter more than one commission schedule for a salesperson, and those can be in effect during different time periods or simultaneously. For example, a salesperson can simultaneously receive commissions based on gross wages as well as active lives (active employees).

The system calculates commissions during the specified date range. If the period covered by the From Date and To Date for one or more salespeople overlap, the system computes all those schedules during that time period.

Note the following:

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When setting up commissions on the client level, you cannot set up both client and system-level plans on the same line. If you attempt this setup and click Accept, an error message displays.

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If both a client-level and a system-level plan are applied, then the system calculates the commissions based on the system-level plan.

To set commission levels, do the following:

Select Client.

From Client|Change, select Client Details.

Select Commissions from the Actions menu.

Complete these fields as required.

Field Name

Description

Salesperson

In the Salesperson field, enter the user ID of an employee at your organization who is a sales representative associated with the client.

From Date

Enter the From Date on which the commission level goes into effect.

To Date

Enter the To Date on which the commission level expires.

There are two ways to calculate commissions, simple or complex.

To calculate simple commissions:

Amount

Enter the commission amount as a flat amount or a percentage.

Flat or Percent

Indicate if the commission amount is Flat or Percent.

Based On

Indicate what the commission is based on.

The following Based On options work with the Percent option (see above):

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Gross Wages: Total gross wages of the client payroll invoice.

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Admin Fees: Total amount of administrative fees on the client payroll invoice.

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Benefit Commission Type: Benefits-based commission for a specific benefit type. (You must enter the benefit type code in the Based on Item field.)

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Benefit Commission Percentage: Percentage based on the benefit list. (You must enter the specific group benefit plan ID in the Based on Item field.)

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Workers Comp: Total amount of workers’ compensation billed to the client for the payroll period.

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Workers Compensation Profit: Checks bill code 005 and computes the profit, and also checks for information entered on losses.

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Average Number Lives: Average number of active employees as of the period end date of the payroll (regardless of whether the employees were paid in the payroll batch).

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Gross Profit: Sales items minus the direct cost items. The value is shown on the Profitability Report in the backend system.

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Tax Profit: Sales of tax-based items (such as FUTA and SUTA) minus the cost for those tax items. Tax profit is rarely used for commissions because when not passing shelter credits it can often show a loss for the month.

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Percent of Bill Code: Fixed percentage for the amount charged on a specific bill code. (You must enter the percentage in the Based on Item field.)

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Profits to Admin (Enter Bill Code in Based On): The system uses the specified Bill Code and then subtracts the cost associated with that Bill Code. That amount (profit or loss) is used in the percent computation. For example, if you choose Bill Code 004 (SUTA) and specify 5% of profits, and there was $1000 in sales and $960 in costs, the payout would be $2.00 ($40.00 x 0.05).

The following Based On options work with the Flat option (see above):

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Fixed Amount Group 1–5: Sets a flat amount that a user can elect to include when running Compute Commissions.

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Fixed per Paid Employee: Flat commission based on the number of employees paid in the commission cycle.

Note: If you select a Based On option that is invalid for the selected Flat or Percent option an error message displays, "<Based On Option> 'based-on' codes will not support <XXX> Amounts." Click OK to continue.

Based on Item

Enter additional based-on types to the commission rule at the client level, such as Percent of Bill Code, Profits to Admin, Workers Compensation Profit, Benefit Commission Type, and Benefit Commission Percentage.

For complex commission structures, enter a Based on Plan, which is the ID of the commission plan. Do not use the Amount, Flat or Percent, and Based On fields. (See Creating Commission Structures.)

Click Accept.

Click Save.