Payroll Earnings Summary Report

How to set up hourly pay 

Go to the employee's profile and configure their hourly rate. This is the base rate used for all hourly calculations.

If your employees work across different types of tasks at different pay rates, you can enable the Work Tasks feature at organisation level. With Work Tasks enabled, you configure hourly rates at the work task level rather than a single rate per employee — so a therapist might earn one rate for treatments and a different rate for front-desk cover.

How to configure overtime 

Overtime is configured at the employee level, so you can match the rule to the law that applies to each employee's location.

For example, to comply with the standard federal rule, you would configure: above 40 hours in a workweek, apply a 1.5× multiplier. Many states follow this weekly threshold. Configure each employee according to the rule that applies to their location.

How overtime appears in the report 

The report splits hourly earnings into two columns:

Separating the two means Straight Time Hourly Pay is always a clean, complete figure for all hours worked, and Overtime Premium is always the incremental amount owed for overtime. The two never overlap.

Example 1 — Single hourly rate 

Setup:  Hourly rate $20/h. Overtime rule: above 40 hours per week at 1.5×.     Hours worked:  45 hours in the week.

Straight Time Hourly Pay covers all 45 hours at the base rate. Overtime Premium adds the extra half-rate for the 5 overtime hours. Together they equal the correct total: 40h × $20 + 5h × $30 = $800 + $150 = $950.

Example 2 — Work Tasks enabled, two tasks with different rates 

Setup:  Work Tasks enabled. Overtime rule: above 40 hours per week at 1.5×.     Task A — Treatments: $25/h, 30 hours.     Task B — Front desk: $15/h, 15 hours.     Total: 45 hours (5 hours overtime)

Step 1 — Straight Time Hourly Pay is calculated per task at each task's rate:

Step 2 — Average Hourly Rate (AHR) is derived for the overtime premium:

AHR = Total straight time earnings ÷ Total hours = $975.00 ÷ 45h = $21.67/h

Step 3 — Overtime Premium uses the AHR:

Because the employee's earnings vary by task, the overtime premium is based on their blended Average Hourly Rate rather than any single task rate. This is the standard approach for employees working at multiple rates in the same workweek.

How to configure commissions 

Precedence — which configuration wins 

When more than one configuration applies, Zenoti resolves them in this order:

Item level  →  Employee level  →  Job level 

•  If a commission is configured at item level, that rate takes priority for that item

•  If no item-level rate exists, the employee-level plan applies

•  If neither exists, the job-level plan applies

This lets you set a broad default at job level, override it for specific employees, and override again for specific items.

Types of commissions 

Cancellation and No-show commissions are only calculated when the relevant center-level settings are enabled. If you compensate employees for cancelled or no-show appointments, configure this in your center settings.

What this setting does 

Many businesses guarantee employees the higher of their hourly pay or their commission — so an employee is never disadvantaged in a slow period. Zenoti can do this comparison for you automatically.

Enable the center-level setting Compare commissions against hourly pay. When it is on, Zenoti compares the two amounts for the pay period and applies whichever is higher. The report shows the winning amount in the appropriate column, so you can process payroll directly from the report without calculating or comparing manually.

Two comparison options 

 Exactly what gets compared

This is important for processing payroll correctly.

Hourly side of the comparison: 

Straight Time Hourly Pay — the base hourly rate applied to all hours worked

Commission side of the comparison: 

Service Commission  +  Add-on Service Commission  +  Request Therapist Bonus  +  Free Service Commission  +  Redo Penalty  +  Product Commission (only if you selected the Service and Product option)

Overtime Premium is always added on top   

Overtime Premium is never part of the comparison. It is always added on top of whichever side wins.

This matters for compliance. Overtime premium is an amount the employee has earned for working beyond the threshold — it is owed regardless of whether their hourly pay or commission was higher for the period. Including it in the comparison would risk under-reporting overtime.

How this differs from the existing report 

Your overtime calculation itself is unchanged — it continues to follow the rule you configured for each employee.

Example 3 — Comparison with overtime 

Setup:  Hourly rate $20/h. Overtime above 40 hours at 1.5×. Comparison enabled — Service commission only.     

Hours worked: 45 hours.     

Service commission for the period: $780.00

Result:  $900.00 (hourly) is higher than $780.00 (commission), so hourly pay is applied.

Because hourly pay won, this $900.00 maps to your Hourly Pay payroll code — not to a generic combined code. The employee's paystub will accurately reflect that this was hourly earnings.

How to turn this on

This is a two-step configuration — an organisation-level toggle, then a matching center-level choice. Both are required.

Step 1 — Organisation level. Enable the setting:

"Allow commission comparison based on selected work tasks"

When enabled, you can choose which work tasks are eligible for commission comparison. Only selected work tasks will be compared against commission during payroll calculation.

Note: This setting applies only to centers where "Calculate payroll hours" is configured based on actual check-in / check-out time. If a center calculates payroll hours a different way, this option will not take effect for that center.

Step 2 — Center level. Enabling the organisation setting makes the capability available — each center must still select the matching option under:

"Compare employee pay calculation: Hourly vs Commission"

There are four options. Only the last two use the selected-work-tasks logic described in this section:

Choose whichever of the last two matches your commission scope — service only, or service and product combined. This choice is what determines whether Product Commission is included on the commission side of the comparison, exactly as in the existing whole-period comparison options.

If the center-level setting is left on one of the first two options, the organisation-level toggle has no visible effect at that center — the comparison continues to run against total hourly pay for all tasks, as before.

Two categories of hourly pay

Enabling the setting splits an employee's hourly pay into two subtotals:

Together the two subtotals make up the employee's full Straight Time Hourly Pay.

What gets paid

Applied earnings = Non-comparable hourly pay + the higher of (Comparable hourly pay, Commission)

Non-comparable hourly pay is additive in every case. Only the comparable portion is ever displaced by commission.

What you and your employees can see

Under Straight Time Hourly Pay — in the report and in the myZen app — the drill-down shows:

•  A work task wise breakdown: task name, hours, rate and pay for each task

•  Each task marked as comparable or non-comparable

•  Total comparable hourly pay as a subtotal

•  Total non-comparable hourly pay as a subtotal

•  Whether the comparable hourly pay was applied, or displaced by commission

This means neither you nor your employees need to reconstruct the comparison manually — the breakdown shows exactly which tasks fed the comparison and what the outcome was.

How this changes the Average Hourly Rate for overtime

When this setting is enabled, the Average Hourly Rate (AHR) used to calculate the Overtime Premium is derived from what the employee actually earned — so the winning side of the comparison feeds into it:

AHR = ( Non-comparable hourly pay + Max ( Comparable hourly pay, Commission ) ) ÷ Total hours worked

The Overtime Premium is then calculated as: Overtime hours × AHR × 0.5 (for a 1.5× overtime rule).

Example 4 — Commission wins the comparison

Setup: Work Tasks enabled, with Treatments and Colour Service selected for comparison. Overtime above 40 hours at 1.5×. Commission for the period: $820.00

The comparison: Comparable hourly pay $740.00 vs Commission $820.00 → Commission is higher, so commission is applied.

Overtime:

AHR = ( $198.00 + $820.00 ) ÷ 42h = $24.24/h

Overtime Premium = 2h × $24.24 × 0.5 = $24.24

The $740.00 of comparable hourly pay is not paid, because commission of $820.00 displaced it. The $198.00 of non-comparable hourly pay is paid regardless.

Example 5 — Comparable hourly pay wins the comparison

Same setup and hours as Example 4, but commission for the period is $600.00

The comparison: Comparable hourly pay $740.00 vs Commission $600.00 → Comparable hourly pay is higher, so it is applied.

Overtime:

AHR = ( $198.00 + $740.00 ) ÷ 42h = $22.33/h

Overtime Premium = 2h × $22.33 × 0.5 = $22.33

Because the comparable portion won, the applied amount equals the employee's full Straight Time Hourly Pay, and commission of $600.00 is not paid.

Comparison of the two outcomes

Important: Note that the AHR — and therefore the Overtime Premium — differs between the two outcomes, because the AHR is derived from what was actually applied. Do not calculate the Overtime Premium from the base task rates when this setting is enabled.

The report shows tips differently depending on whether your business is enrolled in Same-Day Tips Payout.

If you are not enrolled in Same-Day Tips Payout 

A single Tips column appears, showing the total tips recorded against invoices for the period. All of this flows through your payroll.

If you are enrolled in Same-Day Tips Payout 

Three columns appear:

How the three relate 

Tips (total recorded against invoices)   −   Tips payout by Zenoti (already paid out)   =   Tips to be paid by employer (process through payroll)

Mapping to payroll codes 

Tips payout by Zenoti behaves like cash tips: the employee has already received the money, so it does not increase their net pay. However, it is still taxable income and must be reported to your payroll provider so that withholding is calculated correctly.

Tips to be paid by employer behave like paycheck tips: they are paid to the employee through payroll and form part of their net pay.

Paid Time Off 

Paid leave types configured in your Leave Policies appear automatically as PTO earning columns in the report — one column per paid leave type.

When an employee takes paid leave during the pay period and the leave request is approved, the corresponding hours and pay appear against that leave type in the report.

How PTO pay is calculated: based on your leave policy configuration, either the employee's hourly rate or a fixed rate is used to calculate the pay for the leave hours taken.

Unpaid leave types do not generate PTO earning columns.

Salary 

The fixed salary amount for the pay period, for salaried employees.

Known limitations 

•  No proration for partial periods. If an employee's start or termination date falls within the pay period, the full period salary is shown. Adjust manually for affected employees.

•  Base location only. Salaried employees appear with their salary record only at their base location, not across all locations where they hold a role. Add amounts manually if you pay across mapped locations.

Both are being addressed in a future release.

Other Earnings 

Includes Tenure Bonus, any custom earning columns your business has created, and any additional earning types configured for your organisation.

When you open the report 

The report displays the last available calculated data for the selected pay period. If earnings have never been calculated for that period, the report prompts you to calculate.

Recalculating 

Click Recalculate to refresh earnings for the selected pay period. Recalculate whenever underlying data or configuration has changed — for example a new invoice has been processed, a commission plan has been updated, or an overtime rule has been modified.

Last refreshed information 

The report shows when the data was last calculated and what triggered it:

"Last refreshed on [date, time] by [name/system] from [source]"

The source indicates where the calculation was triggered from — the web admin, myZen, the Zenoti Manager App, or an automatic scheduler run. This gives you a clear audit trail of your earnings data.

Employee-triggered recalculation (optional) 

Your organisation can enable "Allow employees to refresh payroll data from myZen". When enabled, employees can trigger a recalculation of their current pay period earnings from myZen or the Zenoti Manager App. Any recalculation triggered this way is reflected in the report, with the source shown in the last refreshed line.

All existing supplementary reports remain available from the employee record in the new report:

These are accessed in the same location as before.

Can I use the existing Payroll Summary Report alongside the new one?

Yes. Both reports are available during the transition. We recommend running them in parallel for one or two pay periods so you can compare figures and familiarise your team before switching over.

Will the existing Payroll Summary Report be removed?

The existing report remains available for now, but it will eventually be deprecated. We recommend transitioning your payroll workflow to the Payroll Earnings Summary once you have validated the figures.

I use ZIP Payroll. Which report feeds the payroll input screen?

Once the Payroll Earnings Summary is enabled for your organisation, the payroll input screen pulls values from the new report, not from the existing Payroll Summary Report.

Will my historical payroll data change?

No. Historical pay periods remain as processed. The new report applies to current and future pay periods.

Our overtime is configured differently across locations. Does the new report change how overtime is calculated?

No. Overtime calculation follows the rule you configured for each employee, exactly as before. What is new is that commission comparison always runs across the full pay period, separately from your overtime configuration.

Why might my totals differ from the existing report when comparison is enabled?

The new report compares Straight Time Hourly Pay rather than Total Hourly Pay, and always compares at the pay-period level. Overtime Premium is added on top instead of being folded into the compared figure. Your total earnings should be correct in both cases, but the way they are split across columns has changed — and overtime is no longer at risk of being counted twice.

I'm on a semi-monthly pay frequency. What changes for overtime?

Overtime hours from a workweek that straddles two pay periods are allocated to the period in which that business week ends, in line with wage and hour requirements. You may see overtime premium shift between periods compared with the existing report.

What is AHR and when does it apply?

AHR is the Average Hourly Rate. It applies when the Work Tasks feature is enabled, and an employee works across multiple task types at different rates. Zenoti calculates a blended rate — total straight-time earnings divided by total hours — and uses it as the base for the overtime premium.

Can I choose which work tasks are compared against commission?

Yes, in two steps. Enable "Allow commission comparison based on selected work tasks" at organisation level, then select one of the two selected-work-tasks options under "Compare employee pay calculation: Hourly vs Commission" at center level — choosing service-only or service-and-product scope. Only hourly pay from the selected tasks is then compared against commission; hourly pay from all other tasks is non-comparable and always paid in addition. This also changes how the Average Hourly Rate for overtime is derived. This setting applies only to centers where "Calculate payroll hours" is configured based on actual check-in/check-out time.

Which commission configuration applies if I've set it up at more than one level?

Item level takes priority, then Employee level, then Job level.

Which tips figure should I process through payroll?

If you are enrolled in Same-Day Tips Payout: use Tips to be paid by employer as paycheck tips (part of net pay), and report Tips payout by Zenoti as cash tips for tax calculation only (not part of net pay). If you are not enrolled, only a single Tips column appears, and the full amount flows through payroll.

Do I need to click Calculate every time?

The report shows the last calculated data when you open it. Click Recalculate when configuration or underlying data has changed, and you need updated figures.

We are actively developing this report and welcome your input. For questions, feedback, or issues, write to payrolloperations@zenoti.com.