Manage Commission Wage in Employment Terms

Objective

When an employee completes a sale and earns an achievement based on the sale, the employee receives a commission based on the total value of the achievement. The commission is paid to the employee as its own Wage Type, this guide describes how HR Managers create a Wage specifically for the recording a Commission specific Wage Type.

Process

HR Manager
Create Commission Template and Commission Rules
HR Manager
Add 'Commission' Wage Type to employee Employment Terms
Employee
Completes sales and earns Achievement
Supervisor
Records and approves employee Achievement
HR Manager
Generates Payment for payment period
HR Manager
Reviews Payments and exports for payroll

Prerequisites

  • You are HR Manager

Click Through

  • Start in HR HUB
  • Under Compensation, navigate to Wages
  • Click on +New in the top-ribbon
  • Under the Summary tab
    • Enter the name of the applicant or employee, depending on the requirement
    • Enter the details of, and select, the appropriate Employment Term
    • Select the Start Date of the new Wage as required
    • If required, enter the End Date of the new Wage
    • From the options set, select the Commission Wage Type
    • Identify and select the Payment Period
      • If a yearly Payment Period is selected, a payment month must be specified
    • Enter any remarks as required
  • Under the Commission Definition tab
    • Select whether the Commission Wage is based on a Template
    • If yes, select the appropriate Commission Template
    • If no, the Commission Rule(s) can be added in to the Commission Rules grid, that appears in the Commission Definitions tab after saving
  • Save & Close

Hint

Where an employee earns an Achievement in a currency that is not the employee Payment currency, the Achievement is approved by a supervisor, and then the currency conversion takes place once 'Generate Payments' is selected.

Result

After adding the Commission Wage to the employee's Employment Term, their Commission will automatically be calculated for every Payment Period as defined, and added to their Payments upon Payment Generation.
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