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:
When service fees are included in your compensation methods, the fee is automatically deducted during payroll calculations.
If you would like a service fee to apply only to a particular worker, you can configure it using one of the following methods.
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.
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.
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.
Important 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.