Service Fees: What They Are and How to Set Them Up

Service Fees: What They Are and How to Set Them Up

Overview

A service fee is an amount deducted from a provider's (worker's) earnings when they complete a service. Service fees are commonly used to account for costs associated with performing services and can be incorporated into your compensation and payroll setup.

Service fees can be configured as either:

  • A percentage of the service price
  • A fixed dollar amount


Additionally, service fees can be assigned:
  • To a specific worker
  • To all workers who perform a particular service

When service fees are included in your compensation methods, the fee is automatically deducted during payroll calculations.

Setting Up a Service Fee for a Specific Worker

If you would like a service fee to apply only to a particular worker, you can configure it using one of the following methods.

Option 1: Mass Service Update

  1. Navigate to Setup.
  2. Select Mass Service Update.
  3. Select the desired Worker.
  4. Locate the service you would like to update.
  5. Enter the appropriate service fee amount or percentage.
  6. Select Save.

Option 2: Setup Worker Details

  1. Navigate to Setup.
  2. Select Setup Worker Details.
  3. Select the worker's name.
  4. Open the Services tab.
  5. Locate the service you would like to update.
  6. Select the Pencil Icon in the Edit column.
  7. Enter the service fee amount or percentage.
  8. Select Save.

Setting Up a Service Fee for All Workers

If you would like all workers who perform a specific service to have the same service fee applied, you can update the service fee at the service level.

Option 1: Mass Service Update

  1. Navigate to Setup.
  2. Select Mass Service Update.
  3. Select Company.
  4. Choose the appropriate Service Group and/or Level.
  5. Locate the service you would like to update.
  6. Enter the desired service fee amount or percentage.
  7. Select Save.

Option 2: Setup Service Details

  1. Navigate to Setup.
  2. Select Setup Services Details.
  3. Select the appropriate Service Group.
  4. Locate and select the service you would like to update.
  5. Find the Service Fee column.
  6. Enter the desired service fee percentage and/or dollar amount.
  7. Select Save.
  8. Repeat these steps for each service you would like to assign a service fee to.

Any worker assigned to a service with a service fee will have that fee applied unless a worker-specific service fee has been configured for that service.

Helpful Tip

Before making updates, determine whether the service fee should apply to a single worker or to all workers performing the service. Setting the fee at the appropriate level helps ensure payroll calculations remain accurate and consistent across your business.

       



WarningImportant Note: Service fees are used as part of compensation and payroll calculations. Changes to service fees may affect future payroll processing. If you are unsure how service fees impact your compensation setup, review your compensation methods before making changes.


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