PetGroomer.com Magazine
20
October / December 2022
50/50 Commission Formula Employer vs. Employee Shocker Employees understand payroll deductions stated on their paychecks. Before their employer gets a paycheck likewise subject to personal payroll deductions the business must pay employer taxes and contributions, and operational overhead. In the example on the next page, a parttime employee knows they groomed pets totaling $720.00 gross sales, and their 50% commission share is $360.00. The employee knows their employer retained $360.00. The hidden story is that after payroll deductions the employee received a paycheck in the net amount of $253.26, but the owner’s $360.00 equal share was whittled down to a paycheck in the net amount of $53.04.
owner would get less than their $253.26, but most thought 20% to 30% less. Realistically, the owner gets around 80% less. Don’t misunderstand. The employee is not overpaid! The frustration of grooming employers often sources to this seeming distortion that employees don’t understand. Grooming Business in a Box® can show employers ways to use The Madson Management System to improve this disparity without lowering wages, even raising wages. Quality of pet care will never suffer, in fact, we can improve it.
We cannot expect employees to understand this disparity without explaining it. For this reason we create the illustration on the next page. Some employers Very few employees understand this have displayed it to staff at meetings to dramatic difference. We asked groommixed results. Some employees got it ers in surveys to project just how much and saw why expecting 55% to 60% lower the owner’s share would be in can simply be unrealistic to some opersuch as case. ations, especially if the business is paying even higher rents than we accountNot one groomer surveyed estimated here. ◄ Subscribe www.egroomer.com 20 © 2013 Find A Groomered Inc. for All rights reserved less than $100.00. TheyCopyright did think the PetGroomer.com Magazine www.petgroomermagazine.com Subscribe Free
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