Employee compensation, payroll and commissions configuration

The employee compensation information should be specified within the Accounting tab of the employee's profile:

Let's break down all of the Compensation fields.

• Payroll schedule -  specifies the regular dates and frequency on which an employee will be paid, and it needs to be configured first under Settings/Account/Payroll schedule; for detailed instructions on setting up payroll schedules in the settings and having them available for selection in this field, please click here.
  

• Compensation Type - hourly, salary, or commission - refers to the method by which an employee's compensation is determined:

Hourly: Employees are paid based on the number of hours they work. They receive an hourly wage, and their total compensation varies depending on the number of hours they clock in.

Salary: Employees receive a fixed amount as their regular compensation.

Commission: Compensation is tied to an employee's performance and sales achievements. Employees earn a percentage of the sales they generate, providing motivation for increased productivity and sales performance.

• Monthly Minimum - the amount that the system automatically calculates when the compensation type is set to commission, and the Weekly Minimum field is filled out.

• Weekly Minimum - represents the minimum amount an employee is guaranteed to earn on a weekly basis when their compensation type is set to commission. This amount will be taken into account in the Monthly Minimum field.

• Sales - a multiplier that will be taken into account in the employee's payroll, Sales field.

• Outside Sales - a multiplier that will be taken into account in the employee's payroll, Outside Sales field. 

• Team Sales - a multiplier that will be taken into account in the employee's payroll, Team Sales field.

All the mentioned fields are considered in the employee's payroll. Let's examine how they factor into the structure of the employee statement.

1. Payroll schedule, previously selected in the Compensation form.

2. Recipient or payee to whom a payment or compensation is directed, defined in the employee's profile, Accounting tab, Payment info.

3. Employee's name.

4. Drivers who were assigned to the fleet manager during the payroll week.

5. Qualifying Sales are calculated based on the following criteria:

• If the linehaul of load exceeds the driver's gross sales target (defined in driver's profile/overview/job info/gross sales target), the qualifying sales are determined by adding the linehaul and detention values of every load:

Qualifying Sales = Linehaul + Detention 

• If the linehaul of load is less than the driver's gross sales target, the qualifying sales are calculated by adding zero to the detention value of every load:

                                                       Qualifying Sales = 0 + Detention 

6. Outside Sales - calculated by subtracting the Fleet Sales amount from the Total Booked Revenue.

7. Team Gross Goal - a sum of all of the gross sales targets within a team.

8. Team Sales - a sum of all of the teams qualifying sales. 

9. Over Target - calculated by subtracting the total gross sales target from the qualifying sales.

10. Sales amount is determined using the following formula:

                Sales = Qualifying sales * ( Sales multiplier * 0.01)

Sales multiplier is the percent specified in the Sales field:

For example, if a fleet manager had only one driver within a payroll week, and the driver delivered just one load with a linehaul of 2600, while the driver's personal gross sales target rate was set at 2500, and the Sales field in Accounting tab was filled with a value of 2.0, the qualifying sales would be calculated by adding the linehaul and detention. In this scenario, the sales would be calculated as follows: 2600 * (2.0 * 0.01), resulting in the Sales field in the employee's statement displaying a value of 52.

11. Minimum is the amount specified in the Weekly Minimum field on the employee's compensation.

12. Team Bonus amount is determined using the following formula:

                            Over Target * (Team Sales multiplier * 0.01) / Team Size

Team Sales multiplier is the percent specified in the Team Sales field in the Compensation form:
Overall, Team Bonus is calculated by multiplying the amount specified in the Team Sales field on the employee's compensation by 0.01, then multiplying the result by the Over Target, and finally dividing the result by the team size.

13. Outside Sales amount is determined using the following formula:

          Outside Sales of the team * (Outside Sales multiplier * 0.01)

Outside Sales multiplier is the percent specified in the Outside Sales field in the Compensation form:

Outside Sales are calculated by multiplying the amount specified in the Outside Sales field on the employee's compensation by 0.01, then multiplying the result by the Outside Sales of the team.

14. Deductions and adjustments are additions or deductions from employee's regular earnings.

15. Earnings are calculated by the following criteria:

• If the amount specified in the Weekly Minimum field on the employee's compensation is higher than the Sales amount, earnings are calculated by adding the values of Weekly Minimum, Outside Sales, Team Bonus and fees.

                 Weekly Minimum + Outside Sales + Team Bonus + Fees

• If the amount specified in the Weekly Minimum field on the employee's compensation is lower than the Sales amount, earnings are calculated by summing up the values of Sales, Outside Sales, Team Sales and fees.

Sales + Outside Sales + Team Bonus + Fees

16. Settlement  is calculated by adding the earnings and adjustments.