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Understanding Variable Compensation

In Zenefits, you may wish to hire or designate certain employees or workers as having $0 salaries. This can be for a number of roles or reasons, but here are some examples:


  • Founders or owners
  • Profit sharing or bonus structures
  • Sales personnel

However, designating a $0 salary previously led to issues for those workers when enrolling in life and disability insurance. In Zenefits, you can now hire someone with variable compensation while allowing them to elect for proper life and disability coverage.


Before you can start assigning variable compensation pay types and earnings to your workforce, you'll need to set them up in your Hiring app in Zenefits.



How to set up Variable Compensation Types


  1. Open the Settings tab in your Hiring app in Zenefits.
  2. Click the Variable Compensation link from the left menu.
  3. Click +Add Variable Compensation link in the right corner.
  4. Give the variable compensation type a name- we recommend something that will be easily recognizable for your hiring and payroll managers and admins.
  5. Next, select the type of compensation: commission, bonus, owner's draw, or other.
  6. Select if the amount is set or percentage based.
  7. Save Changes.

Now that you've set up a variable compensation type, you'll be able to assign it to your workers either in Hiring flow, or through the Make Changes link in the employee profile.



Variable Compensation and Payroll

After setting up the variable compensation type for a worker, you'll want to ensure that the corresponding pay type is ready for the next pay run.Zenefits PayrollFor three of th... Learn more

Variable Compensation and Hiring

Once you've set up a variable compensation type in the Settings section of the Hiring app, you can add this during the hiring flow.As an adminIn the Offer Details step of the Hi... Learn more

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