Businesses that want to calculate employee pay using hourly pay and service commission comparison based on employee overtime-exempt calculation must request for a database level setting to be turned on for them.
To set up payout based on employee overtime-exempt calculation:
Prerequisite: If you would like to turn on this option for your business, reach out to Zenoti Support.
From the center level, go to Admin > Organization > Centers > Settings tab > Expand Employee section.
For the setting, Employee pay using hourly pay and service commission comparison select Based on employee overtime-exempt calculation.
Consider the following flowchart to understand how overtime exemption is calculated.
Step 1: Did the employee work overtime?
Note: See Step 1 in the above workflow.
Zenoti first determines if an employee worked overtime in a pay period. That is, did an employee work more than 40 hrs in a week?
If the answer is no, the total pay is calculated as the higher of commission and hourly pay. That is the same as the setting, Pay higher of commission and hourly pay.
Further, commission ($100) calculated post deduction ($10), refunds ($9) and redo ($8)
That is, commission calculated till Oct 20 release = (100-10-9)
Commission calculated based on overtime exemption (after Oct 20 release) = (100-10-9-8). That is, if your business wants to calculate pay based on overtime exemption, the redo penalty amount is also deducted from the commission earned by the employee.
Note: Service commission excludes no show commission, cancellation commission, add-on commission, and request therapist (RT) bonus.
Step 2: Is commission earned more than hourly pay at overtime rate?
Note: See Step 2 in the above workflow.
Zenoti checks if the commission amount is more than hourly pay at 1.5 times the base rate for the employee. If yes, Zenoti goes to Step 3, and if no, Zenoti goes to Step 4.
Step 3: What is the employee earning in the representative period?
Note: See Step 3 in the above workflow.
Next, is the commission amount more than non-commission pay for past X look-back periods? Note: The look-back period is configured at the center level.
For employees without payroll history, assume the answer is No (commission pay is NOT greater than non-commission pay) and hence employees should be paid overtime.
For example, an employee joined on July 5 (the look-back period is set to 6 weeks). Since there is no payroll history for this employee in the preceding 6 weeks, the answer for this step when payroll is processed on July 12, is No.
When payroll is processed on July 19, July 26, Aug 2, Aug 9, and Aug 16, the answer for this step still stays No. Only on Aug 23, Zenoti can evaluate if commission pay is more than non-commission pay. When the answer is Yes, the commission will be paid out.
Step 4: What overtime pay is processed?
Note: See Step 4 in the above workflow.
If the answer for Step 2 and Step 3 is No, the employee is set to be paid by the hour. Hourly pay is determined by the higher of the base rate (configured at employee profile level) or commission rate (calculated by dividing commission by the number of clocked in hours in the pay cycle).
Note: Refer to the employee Hourly pay/Service commission report for details.