Commission Calculation Example – Stylist

Hourly Wage                            Service + Retail Commission

        $8.00                                         $0-$1824.99 – 40%

                                                       $1825-$2124.99 – 45%

                                                       $2125 or more  - 50%

                                                                          +

                                                                   Retail – 8%

How do you earn commission? – Each hour you work you’ve to have service commission higher than your hourly wage.  For $8 hourly wage person you’ve to do more than $20.00 in service sales each hour you work.

Example 1:

Hours worked:  60

Service Sales: $1000

Retail Sales: $500

Service Sales commission: $1000 x 40% (40% because service sales was less than $1824.99) = $400

Hourly wage = 60 hours x $8/hour = $480

In this case you get hourly wage because that is higher than service sales commission. Total for pay period = $480.

Effective hourly wage = $480/60 = $8

Example 2:

Hours worked:  60

Service Sales: $1500

Retail Sales: $800

Service Sales commission: $1500 x 40% (40% because service sales was less than $1824.99) = $600

Hourly wage = 60 hours x $8/hour = $480

In this case you commissioned because commission is higher than hourly wage.  Since you commissioned you also get retail commission, $800 x 8% = $64, Total for pay period = $600+$64= $664.

Effective hourly wage = $664/60 = $11.07

Example 3:

Hours worked:  70

Service Sales: $3000

Retail Sales: $1000

Service Sales commission: $3000 x 50% (50% because service sales was higher than $2125) = $1500

Hourly wage = 70 hours x $8/hour = $560

In this case you commissioned because commission is higher than hourly wage.  Since you commissioned you also get retail commission, $1000 x 8% = $80, Total for pay period = $1500+$80= $1580.

Effective hourly wage = $1580/70 = $22.57