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Setting up and Managing Staff Payroll

Learn how to configure payroll settings, define commission rules, manage tip splitting, and set up individual staff payroll rates.

Amelia avatar
Written by Amelia
Updated this week

MoeGo’s payroll features allow you to customize commission structures, hourly rates, and tip calculations, making it easy to track how much each staff member earns during a payroll period.
This guide walks you through all payroll settings—general rules, tip behavior, service-specific commissions, and staff-level configurations.

Setting Up Staff Payroll

You can configure payroll and commission settings for each staff member directly from their individual profile. This includes setting hourly and/or commission rates, as well as defining how tips are handled—whether tips go entirely to the staff member or are kept by the business.

Payroll details entered here are used to calculate the staff member’s earnings.

Notes

  • Staff Payroll settings are configured per staff member

  • Changes take effect right after you save

  • Tip settings determine whether tips go to the staff member or the business

🖥️ Web version:

Follow these steps to set up payroll for a staff member on the web:

  1. Go to Settings > Staff

  2. Click on the staff member’s name to open their profile

  3. Scroll down to the Payroll section

  4. Select the payroll options that apply:

    • Hourly rate

    • Commission rate
      (Hourly and commission can be selected together if applicable)

  5. Select the Tips option if this staff member is eligible for tips

  6. Review the payroll summary displayed at the top of the section

  7. Click Save to apply your changes

📱Mobile App:

Follow these steps to set up payroll in the mobile app:

  1. Tap Settings > Staff > Payroll Setting

  2. Tap Staff section and select specific staff profile

  3. Use the toggles to enable the applicable payroll types (hourly, commission, tips)

  4. Enter the required rates for each enabled option

  5. Tap Save to confirm your changes


Payroll options

General Service Commission

Service commission is calculated based on the service and add-on revenue from appointments assigned to a staff member. You can choose one of two commission structures:

Commission by Fixed Rate

With a fixed rate commission, you set a single percentage that the staff member earns from the service and add-on revenue of each assigned appointment.

  • The same percentage applies to the entire appointment total

  • Rates can vary by service, add-on, or staff role if configured

  • For multi-staff appointments, commission is calculated based on the staff member’s assigned portion

This option is best if you want simple and consistent commission calculations.


Commission by Tiered Rate (Per Appointment)

Tiered commission allows you to reward higher sales with higher commission rates. You can choose between Sliding Scale or Progressive tiers.

Sliding Scale

  • The entire appointment is paid at one commission rate

  • The rate is determined by the total sales amount and the tier it falls into

Progressive

  • Different portions of the appointment are paid at different commission rates

  • Each tier applies only to the portion of sales within that tier

Tiered Commission Example

Assume the following tiers:

  • Tier 1: $0–$100 → 40%

  • Tier 2: $100.01–$200 → 45%

  • Tier 3: $200.01+ → 50%

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Sliding Scale Example
If an appointment totals $150, the entire amount falls into Tier 2.

  • $150 × 45% = $67.50 commission

Progressive Example
If an appointment totals $150:

  • $100 × 40% = $40

  • $50 × 45% = $22.50

  • Total commission = $62.50


Hourly Rate

Hourly payroll is calculated based on the staff member’s clock-in and clock-out hours, multiplied by the hourly rate you set.

This option is commonly used for staff who are paid by time rather than appointment revenue.


Tips Rate

When the Tips option is selected:

  • The staff member receives 100% of the tips from their assigned appointments

  • Tips are included in the staff member’s payroll calculation

If the Tips option is not selected:

  • Tips are not included in the staff member’s payroll, and display as N/A

💡 Important Note
Setting a 0% tip rate or withholding tips may violate federal or state labor laws. It is your responsibility to ensure your tip and payroll practices comply with all applicable laws.


Setting Up General Payroll Settings

General payroll settings apply to all staff members included in payroll tracking. These settings control how payroll is calculated, how tips are split, and whether specific services use custom commission rates.

🖥️ Web version

To configure general payroll settings on the web:

Go to Settings > Payroll Settings, where you can manage:

  • Payroll calculation base

  • Tip splitting

  • Specific service commission

📱 Mobile App

To configure general payroll settings in the mobile app:

  1. Tap Settings > Staff > Payroll Settings > General

  2. Tap into each section to edit as needed:

    • Payroll calculation base

    • Tip splitting

    • Specific service commission


Payroll Calculation Base

This setting determines which appointments are included in a payroll period on the Payroll Report.

Payment Received

Staff are paid for appointments that took place during the payroll period as long as the appointment is fully or partially paid.

  • Appointment status does not matter

  • Tips are included if payment has been received

Example
Payroll period: January 1–January 15
Appointments that occurred during this period and are fully or partially paid will be included in payroll, even if the appointment status is not marked as Finished.

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Appointment Finished

Staff are paid only for appointments marked as Finished within the payroll period.

  • Payment status does not matter

  • Tips for finished but unpaid appointments are included only if they were predetermined and added to the invoice

Example
Payroll period: January 1–January 15
Appointments that occurred during this period and are marked as Finished will be included in payroll, regardless of whether payment has been collected.

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Tip splitting

Tip splitting controls how tips are allocated when one or multiple staff members are assigned to an appointment.

Tip Allocation to Staff (Available on web only)

You can choose whether:

  • 100% of tips go to staff, or

  • Tips are distributed proportionally based on service involvement

Tip Splitting Between Staff

When multiple staff members are assigned to an appointment, tips can be split using one of the following methods:

1. Split by Service Price

Tips are divided based on the service price percentage assigned to each staff member in a multi-staff appointment.

Example
A client leaves a $10 tip on a $100 appointment with two staff members:

  • Lily is assigned 80% of the service price

  • Marina is assigned 20%

Tip distribution:

  • Lily receives $8

  • Marina receives $2

Commission is then calculated using each staff member’s normal commission rate.

2. Split Equally Between Staff

Tips are evenly divided among all staff members assigned to the appointment.

Example
A client leaves a $10 tip on a $100 appointment with two staff members:

  • Lily receives $5

  • Marina receives $5

💡 Note
Tip splitting can be customized on an individual invoice if needed.


Specific Service Commission

Specific service commission allows you to set custom commission rates for individual services or add-ons. These rates override staff-level commission settings, including both fixed and tiered commissions.

When an appointment includes one of these services, the commission will always use the service-specific rate.

Example

  • Nail trims have a specific service commission of 90%

  • Groomer A normally earns 40% commission on services

  • Nail trim price: $10

Groomer A earns $9 for the nail trim instead of $4, because the service-specific commission overrides their general rate.


FAQs

Where can I find the Payroll Report?

  • You can find the Payroll Report under Reports > Payroll.

Can employees access these payroll settings?

  • Payroll and commission settings are only available to the Owner account

  • Payroll reports can be shared with specific users as needed

How do discounts affect payroll?

  • Staff commission is calculated based on the original service price, before any discounts are applied.

  • Example

    • Service price: $100

    • Staff commission: 50% → $50

    • Customer discount: 25% (final invoice $75)

  • The staff member still earns $50.

How do package sales affect payroll?

  • If a package is applied to an appointment to cover a service, that service is not included in staff commission.

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