Payroll Rules (How You Pay Teachers)
Welcome to Union's Payroll Rules! We've divided them into two main categories: Performances (upcoming/scheduled content) and Replays (video library content). This support document outlines each payroll rule that is offered today in Union. For comprehensive guidance on configuring your payroll, refer to our video tutorial and accompanying help desk article. Please visit our Payroll Settings support article for additional rules you can set.
FAQ Around Payroll Rules
- You can use multiple rules (i.e. flat rate per class they teach and $1 per registration over 5 registrations).
- If you are paying teachers out for replays, you do not need to create a separate payroll category. This can be included in your payroll rules.
- We do recommend creating an org level rule. While we understand different teachers may have different rates, you can customize this after your create your org level rule.
- As of today, any rule that is based on registration counts, free passes are included in this. We recommend moving towards the percentage of revenue.
- Payroll categories are assigned per event and replay.
Please note that teacher payouts are based on settled revenue, which is calculated from the gross amount, not the net (before fees).
Performances
In Union, performances are scheduled classes. Here are the different ways you can pay your teacher for scheduled classes they teach.
Base (Flat) Rates
If your pay rates include a base pay, you will have the option to set the flat rate amount. You will need to set this for both In-Person/Hybrid and Online Only even if the pay rate is the same for both. Please
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Per Registration Options
If you would like to pay your teachers based on how many registrations they have per class, you will want to include one (or many) rules offered below.
Per Performance (Class) Registration (Flat Rate)
You have the ability to include (or payout) based on a classes registration count and customize for In-Person Registrations and/or Online Registrations. If you are using Union's ClassPass integration, you have the option to set a value per ClassPass registration.
In the example below, it would pay a teacher $5 for every In-Person Registration, $1 for every ClassPass Registration, and $4 for every Online Registration (not replays) per class they teach.
Per Performance (Class) Registration Rates by Count (Different Rates Based on Registration Count)
You can set different rates based on the amount of class registrations. For example, a teacher gets a different rate if they have more than 5 registrations. You can also customize this so there are different rates for In-Person Registrations and Online (not Replays) Registrations if desired.
To add this to a rule, click the checkbox below the registration type you would like to customize.
You should then be prompted to add the rate your teacher(s) should receive if the class has 1-5 registrations, 6-10 and so forth.
In the example below, it's saying when a teacher has 6 In- Person registrations, pay them $1 for each registration. If they have 11 In-Person registrations, give them $2 per registration. If they have 16 In-Person Registrations, pay them $3 per registration and so forth. This rule also shows that if the teacher has any ClassPass registrations, they get $1 AND if there are any online registrations (not replays), pay them a flat rate of $4 per registration.
By default, this is calculated based on registrations. To pay out based on redeemed registrations only, adjust this in your Settings > Payroll.
Revenue Percentage
You have the ability to include (or pay out) based off a percentage of the class revenue they bring in, you can add the percentage here. We highly encourage you to visit our support article, Why Move to the Percentage of Performance Model, to learn more. The percentage you add here will be based off of the total revenue per performance.
Please note that this revenue share works differently for one-time passes and class packs than it does for subscriptions. If a teacher leads a performance, and all (or a portion of) attendees are under a subscription plan, the teacher's share of revenue will be withheld until the subscription renewal period for the students has passed.
Example: A student has a $100 unlimited monthly subscription which he purchased on 9/2/2023. As of 9/15/2023 he has watched three replays and gone to two live classes. Due to revenue being dependent upon the amount of registrations a student redeems within their billing cycle, it cannot be paid out until post the student's renewal date of 10/2/2023. This is because the student could redeem another 7+ registrations between 9/15/2023 and 10/2/2023, decreasing the total revenue, and creating an inaccurate payout.
Replays
Directly below your new Performance rules, you can establish rules for paying teachers for their replays. Let's look at the different ways you can pay a teacher out for replays.
Replay Payroll Highlights & Mentions
- You can add your payroll rules per payroll category
- Teachers will only get paid out by the rule you enable per pay period. In other words, just because Jamie has 20 replays in the replay library does not mean they will be paid out for those 20 replays per pay period.
Per Replay Registration
You can pay a teacher out based on the total registrations a customer accesses per pay period. In other words, when a customer clicks, Play Video, your teacher will get paid the flat rate whether the customer viewed the replay or not.
Per Replay Estimated Delivered Minutes (Most Common)
You can choose to pay your teachers out on the total minutes a customer viewed each replay during a specific pay period. Union has found this to be the most common way businesses pay their teachers as it's compensating them for what the customer viewed. We have seen payments being $0.03 or $0.04 per estimated delivered minutes.
Percentage of Replay Revenue
Similar to scheduled classes, you can give a teacher a percentage of the replay revenue during a specific pay period. Once the replay revenue has been settled, the percentage you add will be included in the teachers payout.
Revenue % after Profit
This feature gives you the ability to payout a percentage of the combined performance and replay settled revenue (within the payroll period) after a teacher's base payout (e.g. performance) is deducted from the the combined performance and replay settled revenue.
Percentage of Revenue after Profit
When this is turned on the percentage provided represents a percentage of revenue payout for the combined performance and replay settled revenue. Any performance or replay specific revenue share percentages provided in the above rules are not taken into account when running payroll.
Note: This percentage is applied to the combined settled revenue, ignoring performance or replay-specific revenue shares that may have been set above. Please visit our more comprehensive support article around this payroll rule.
All settled revenue and % of revenue dollar amounts represent gross revenue before Stripe and Union fees.
For additional assistance or specific questions, please don't hesitate to contact our support team. We're here to help you manage your payroll effectively!