Help with bonus % - doubting myself!

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Madge85A

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Aug 22, 2018
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Hi there, my employer has agreed to pay me a 20% monthly bonus based on total earnings of an average of $10/customer.

For June the total was $7,290 @ 20% (I simply divided this figure by 5) I reach $1,458
July $7,390 @ 20% I reach $1,478 (again, I divided by 5)

However, in May the boss calculated and paid me a bonus of $344 (based on a figure of $6,880) - whereas when I begin to calculate May I reach $1,376

I believe my boss has simply divided the figure by 20 but I'm completely doubting my own math. Could someone please help? I'm due to invoice for the previous two months and don't want to call my boss out on an error if it's me who is completely lacking in math skill (which has been the story of my life!)

Thank you in advance for your assistance :)

Madge
 
Madge85A said:
… in May the boss calculated and paid me a bonus of $344 (based on a figure of $6,880) - whereas … I reach $1,376

I believe my boss has simply divided the figure by 20 but I'm completely doubting my own math …
Click to expand...
I understand. I agree with your suspicion. As long as the boss reported the $6,880 amount and May was to be 20%, then your reasoning is sound. Hope you have a nice boss. :cool:
 
Thank you

Thank you mmm4444bot gahhh....I have a super lovely boss who is normally on point with business related issues but I think this calculation job was just rushed in the midst of a busy period. I was hoping I was wrong..... alas, no cigar, but more $ and one awkward email to write.....
 
Madge85A said:
… I have a super lovely boss … and one awkward email to write
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Your boss may appreciate a direct question: "My bonus calculation for May doesn't match yours. I get 6880/5=1376. Please check this for me. Thank you for your time."
 
You should check the CONTRACT language, first. It may be a language, understanding, or communication problem.

If it's only a VERBAL agreement, it may be a more difficult conversation.

Plus, what does "total earnings of an average of $10/customer" mean? If you start with "7290", does that mean you had 729 customers, that month?
 
Madge85A said:
Hi there, my employer has agreed to pay me a 20% monthly bonus based on total earnings of an average of $10/customer.

For June the total was $7,290 @ 20% (I simply divided this figure by 5) I reach $1,458
July $7,390 @ 20% I reach $1,478 (again, I divided by 5)

However, in May the boss calculated and paid me a bonus of $344 (based on a figure of $6,880) - whereas when I begin to calculate May I reach $1,376

I believe my boss has simply divided the figure by 20 but I'm completely doubting my own math. Could someone please help? I'm due to invoice for the previous two months and don't want to call my boss out on an error if it's me who is completely lacking in math skill (which has been the story of my life!)

Thank you in advance for your assistance :)

Madge
Click to expand...
You are calculating your bonus to be 20% - whereas your boss is calculating the bonus to be 5%.
 
It's a bit curious why $344 wasn't conspicuous, for a boss accustomed to paying $1500 each month. There could very well be a misunderstanding.
 
To clarify this is the first time such an agreement has been entered into between the owner and me, in the role as manager. There is only a verbal agreement - but this is a non-issue as my boss has been asking me for the bonus invoices (including as of yesterday, hence my calculations) so as he can pay me fairly as per our agreement.

729 refers to customers, correct. Based on an average of $10/customer. Our agreement was that it would be a bonus based on profit share with my bonus to sit at 20% until we average 800+ customers/month at which point it will become 25%

So....unless someone can see a different way to $344 based perhaps on month-month growth (aka new customers) I can't find any other way that he has reached that figure.


Thank you all for your help, I really appreciate it.
 
Thank you

Thank you all for the help.

To clarify; the 729 is based on customers paying an average of $10/customer per week.

We have a verbal agreement, but payment of due amount is no issue as we have a good relationship. This is the first time a bonus system has been on place for my role though, and I do suspect my boss simply rushed the maths on this. It's the only logical solution I can reach.

Unless there is some way someone else can see to reach the $344 figure in May? Say month on month growth - but even then I can't align the customer figures with $344.....
 
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