How do I commission?
Commission Calculation Example – Stylist
Hourly Wage
$8.00
Service + Retail Commission
- $0-$1824.99 – 40%
- $1825-$2124.99 – 45%
- $2125 or more - 50%
+ Retail – 8%
How do you earn commission? – Each hour you work you've to have service commission higher than your hourly wage. For $8 hourly wage person you've to do more than $20.00 in service sales each hour you work.
Example 1:
- Hours worked: 60
- Service Sales: $1000
- Retail Sales: $500
Service Sales commission: $1000 x 40% (40% because service sales was less than $1824.99) = $400
Hourly wage = 60 hours x $8/hour = $480
In this case you get hourly wage because that is higher than service sales commission. Total for pay period = $480.
Effective hourly wage = $480/60 = $8
Example 2:
- Hours worked: 60
- Service Sales: $1500
- Retail Sales: $800
Service Sales commission: $1500 x 40% (40% because service sales was less than $1824.99) = $600
Hourly wage = 60 hours x $8/hour = $480
In this case you commissioned because commission is higher than hourly wage. Since you commissioned you also get retail commission, $800 x 8% = $64, Total for pay period = $600+$64= $664.
Effective hourly wage = $664/60 = $11.07
Example 3:
- Hours worked: 70
- Service Sales: $3000
- Retail Sales: $1000
Service Sales commission: $3000 x 50% (50% because service sales was higher than $2125) = $1500
Hourly wage = 70 hours x $8/hour = $560
In this case you commissioned because commission is higher than hourly wage. Since you commissioned you also get retail commission, $1000 x 8% = $80, Total for pay period = $1500+$80= $1580.
Effective hourly wage = $1580/70 = $22.57