Residuals Pay Order

Overview

Residuals Pay Order determines the order in which agents or sales reps are paid their residual commissions for a merchant. Admins can create a payment hierarchy with up to five pay levels. Users at the same level have their splits calculated from the same amount, while users at lower levels are calculated from the income remaining after higher levels have been paid.

• Pay Order 1: The user’s split is calculated from the merchant’s full net income.
• Pay Orders 2–5: The user’s split is calculated from the remaining net income after users in the previous pay level have received their commissions.

Admins can change the pay order for users assigned to an individual merchant or set a default pay order in a user’s settings, which is automatically applied when that user is assigned to a merchant. By default, users are placed in Pay Order 1.

Example: Users in the Same Pay Order

Consider a merchant with $100 in net income and three assigned users: Anna, Bob, and Charlie. Each user has a 5% split and is assigned to Pay Order 1.

Because all three users are in the same pay level, each user’s split is calculated against the full $100 net income. Anna, Bob, and Charlie therefore each receive a $5 payout.

The payouts are calculated as follows:

Example: Users in Different Pay Orders

Now consider a scenario in which Anna remains in Pay Order 1, Bob is moved to Pay Order 2, and Charlie is moved to Pay Order 3.

Anna’s 5% split is calculated against the original $100 net income, giving her a $5 payout and leaving $95.

Bob’s 5% split is then calculated against the remaining $95. His payout is therefore $4.75, leaving $90.25.

Charlie’s 5% split is calculated against the remaining $90.25, resulting in a payout of $4.51.

The payouts are calculated as follows:

When viewing their residual report, agents will see their assigned split percentage. For agents in Pay Orders 2–5, the payouts from preceding Pay Orders are reflected as adjustments in the Expense column. 

In the example above, Bob will see his assigned 5% split, while the Expense column will increase by $5 to account for Anna’s payout in Pay Order 1. This ensures Bob’s payout is calculated based on the remaining $95 rather than the original $100 net income.

Updating User Pay Order

Follow these steps to change the order in which user splits are calculated:

1. Open the Manage Merchant page for the merchant. By default, all users are assigned to Pay Order 1.  
   
2. Click Pay Order.
3. Drag and drop each user into the appropriate pay level.
   
4. Click Save Pay Order to save your changes.
5. Confirm that the updated order appears in the Pay Order column. 
   

You can also assign a default pay order to a user from the user settings page:

After a default pay order is assigned, the user is automatically moved to the selected pay order when they are assigned to a merchant account.