---
title: Configure Percentage-Based Payroll Tiers for Instructors
description: payroll tiers
---

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# Configure Percentage-Based Payroll Tiers for Instructors

## Overview

In Hapana Core, businesses can calculate instructor payroll based on a **percentage of revenue collected** from client sessions. This setup offers flexible compensation based on how clients pay—whether with session credits, drop-ins, or unlimited memberships.

Additionally, fixed rates can be set for sessions paid with **unlimited credits** or via platforms like **ClassPass**, ensuring instructors are still compensated when per-credit values cannot be determined.

---

## Prerequisites

- Admin access to **Edit Profile**
- Session types already created in Core (e.g., Group Classes, One-on-One)
- Payroll report access via **Reports \> Staff \> Payroll**

> Tip: Plan your credit pricing structure ahead of time for better accuracy when assigning percent-based payouts.

---

### Step-by-Step Instructions

### Step 1: **Open Payroll Settings**

- Log into Core.
- Click your **profile initials** in the upper-right corner.
- Select **Edit Profile**.
- In the left sidebar, click **Payroll**.

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440828166_8426ea54_image-20250520184515-175-1.png?width=1541&height=911&name=1759440828166_8426ea54_image-20250520184515-175-1.png)

---

### Step 2: **Create a New Payroll Tier**

- Click the **plus icon (+)** to add a **Payroll Tier**.

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440830961_17b9cef5_image-20250520184537-176-1.png?width=1541&height=911&name=1759440830961_17b9cef5_image-20250520184537-176-1.png)

- Name the tier (e.g., “30% Class Earnings”).

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440833421_baf57d1a_image-20250520184547-177-1.png?width=1541&height=911&name=1759440833421_baf57d1a_image-20250520184547-177-1.png)

- Save and select the new tier from the dropdown.

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440836304_fa3c109d_image-20250520184600-178-1.png?width=1541&height=911&name=1759440836304_fa3c109d_image-20250520184600-178-1.png)

---

### Step 3: **Add Tier Configuration**

- Click the **plus icon (+)** next to **Tier Configuration**.

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440838700_964a3225_image-20250520184611-179-1.png?width=1541&height=911&name=1759440838700_964a3225_image-20250520184611-179-1.png)

- Choose the **Session Type** this tier applies to (e.g., Group Classes).

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440841695_38a495c5_image-20250520184621-180-1.png?width=1541&height=911&name=1759440841695_38a495c5_image-20250520184621-180-1.png)

---

### Step 4: **Select a Percent-Based Payroll Type**

Choose one of the two options:

- **Percent per Credit / Amount Paid**
- **Percent per Credit / Package Rate**

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440844253_c299220a_image-20250520184631-181-1.png?width=1541&height=911&name=1759440844253_c299220a_image-20250520184631-181-1.png)

---

### Step 5: **Enter the Percentage Value**

- For example, enter **50** to calculate 50% of the session’s revenue for payroll.
- Click **Save**.

![Article image](https://support.hapana.com/hs-fs/hubfs/Knowledge%20Base%20Import/1759440846718_641d0726_image-20250520184641-182-1.png?width=1541&height=911&name=1759440846718_641d0726_image-20250520184641-182-1.png)

> Tip: You can assign different percentages for different session types or instructors.

---

### Example Calculation: Known Credit Values

Let’s say 10 clients attend a Group Class, paying as follows:

- **4 clients** used $10 credits → $40
- **4 clients** used $9 credits → $36
- **2 clients** paid $15 drop-in → $30

**Total Session Value** = $106

**Instructor Earnings @ 50%** = $53

---

### Handling Unlimited Credits

For unlimited memberships or ClassPass where credit values can’t be calculated:

- Scroll down in the tier configuration.
- Toggle ON **“Use Base Rate for Unlimited Packages”**.
- Enter a flat value (e.g., **$7**) to apply per client using unlimited credits.

---

### Example Calculation: With Unlimited Credits

Let’s say 15 clients attend a session:

- **4 clients** used $10 credits → $40
- **4 clients** used $9 credits → $36
- **2 clients** paid $15 drop-in → $30
- **3 clients** on unlimited memberships → $7 x 3 = $21

**Total Session Value** = $127

**Instructor Earnings** = (40 + 36 + 30) × 50% + 21 = **$74**

---

## Expected Outcome

Once configured, your instructors will automatically be paid based on:

- The real value of credits or drop-ins used by clients
- A fixed rate for sessions paid via unlimited memberships
- The defined percentage in their assigned Payroll Tier

This improves accuracy, saves admin time, and ensures fair compensation based on actual session value.

---

## FAQs

**Q: Can I assign a flat rate for all sessions instead of using percentages?**

Yes. You can create separate payroll tiers using fixed rates for specific session types.

**Q: What if I don’t assign a value for unlimited credits?**

The system won’t be able to calculate a per-credit value, and instructor earnings will not reflect those clients. Always assign a base rate if you use unlimited packages.

**Q: Can I use this for 1:1 and workshop sessions too?**

Yes. Percent per Credit tiers can be assigned to any session type you configure.

---

**Need help?**

Reach out to our support team via [support@hapana.com](mailto:support@hapana.com)

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