SERVICE WRITER PAYROLL QUESTION

[DUFRESNES]

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[autoguy]

So 8% is on all top line sales, correct? So if the shop generates 1M in sales, the service writer makes a gross 80k? How does the vacation fit in there? How is that and other time off paid? Depends on your sales, but 8% seems a little high.

Why not lower the % and pay a salary plus a % of sales for days worked or the week. 

[rpllib]

Might be worth reviewing this two resources:

https://www.industryessentials.net/copy-of-results    best $30 bucks i have spent in a while

 

https://www.dol.gov/whd/overtime2019/index.htm    more to consider, if you believe your staff can meet the "Duties Test" for "exempt from overtime" salary positions

[DUFRESNES]

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[KAH]

Please tell me that you take into account profit margins for parts and for labor when paying your service writer 8% of gross sales?  

If you do not, your service writer could very well be making more money than you. 

 

 

[DUFRESNES]

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[DUFRESNES]

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[JBockman]

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[DUFRESNES]

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[JBockman]

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[DUFRESNES]

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[JBockman]

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[Andre R]

We approached this problem a little differently. Our shop sits within 1.5 miles of 12 different new car dealerships. They all pay between 8 and 10 percent of sales. They also have some customer satisfaction goals that they need to meet. We pay hourly with overtime and then a percent of sales. Right now both of our service writers are paid $20 per hour. They need to hit $15000 in sales per week to start the incentive. They get 1.25% at $15000 and it increases .25% at every increase of $2500 in sales and tops out at 2.5%. For holiday pay or vacation pay they just get their hourly pay. With this system the writers help each other out through the whole process .

 

[DUFRESNES]

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[Andre R]

What I like about the way we do it is we can give raises on either side .

[JBockman]

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[Andre R]

Yes. One writer works Monday through Friday, 42.5 hrs and the other writer works Tuesday through Saturday 42 hrs. We pay our people weekly and all incentives are payed weekly.

[Hands On]

Since no one answered your question, I will give it ago, how about you take his pay for the three weeks prior to his vacation, use that to generate a daily average pay at that time, then pay him that daily average for his days off.