Payroll setup
Configure how Arketa calculates instructor pay before running payroll reports.
Before running payroll, you need to configure pay rates for each instructor and service type. Arketa uses these rates to calculate what each team member earned during a given period.
Prerequisites
Before adding pay rates, make sure all your service types are set up. Pay rates are organized by service type, so the service types need to exist first.
Pay rate types
Arketa supports pay rates for three contexts:
| Type | Used for |
|---|---|
| Group class rate | Group fitness classes |
| Private session rate | 1-on-1 and small group appointments |
| Video rate | On-demand video content |
Each context has its own rate structure and fields.
Create a pay rate
- Go to Staff → Team → Pay Rates
- Click Create new
- Select the rate type
- Fill in the fields (see below)
- Save
Group class pay rate fields
| Field | What it does |
|---|---|
| Name | Internal label for the rate |
| Base rate | Flat amount the instructor earns per class |
| Minimum total payout / Maximum total payout | Floor and cap on the total payout for a class |
| Base percentage | % of class revenue (after taxes and fees) — applies regardless of attendance |
| Tiered attendance bonuses | Revenue % that applies only within a specific attendance range |
| Flat rate bonus (per sign-up) | Flat amount per student who books |
| Tiered sign-up bonus | Per-student bonus that changes based on attendance range |
| Threshold one-time bonus | A single total bonus based on which attendance range the class lands in |
| Only count customers who are checked in | If on, clients who didn't check in are excluded from pay calculations |
| Include customers who have late cancelled | If on, late-canceled clients count toward pay |
| Exclude clients who were "manually added", added to class for free, or used a promo code that made their booking free | If on, those clients don't count |
| Excluded pricing options | Specific pricing options to exclude from revenue calculations |
How attendance ranges work
The range-based fields — Tiered attendance bonuses, Tiered sign-up bonus, and Threshold one-time bonus — only pay within the From–To ranges you set. For the two tiered fields, clients above your highest range add nothing, but the lower ranges still pay. For Threshold one-time bonus, a class whose counted attendance lands above the highest range earns nothing from that bonus at all.
For example, if Threshold one-time bonus is set to 1–12 clients = $25, a class with 13 or more counted clients earns $0 from that bonus, not $25. Set the top of your highest range above the largest class capacity you run, or use Base rate for an amount you want paid on every class regardless of attendance.
Counted attendance is what your other settings leave behind, so Only count customers who are checked in, Include customers who have late cancelled, and the manually added / free clients exclusion all change which range a class falls into.
By default, clients who cancel before attending are not counted in payroll. Subscription bookings are not included in revenue share calculations — only drop-in and package bookings count toward revenue. Add Revenue per credit in Pricing Option setup to account for membership revenue per booking.
If your pay rate includes late cancels, but has no maximum payout set, the payout may exceed a full class capacity when there are late cancels and a full class. Set a maximum payout to only pay up to the full class payout amount.
Private session and video pay rate fields
Private session and video rates are simpler:
- Base rate (private sessions) or Rate per video (videos) — flat rate per session or video
- Revenue share — percentage of revenue from drop-ins and packages
- Include customers who have late cancelled (private sessions only) — if on, late-canceled clients count toward pay
Assign rates to instructors
- Go to Staff → Team
- Click on the instructor
- Click the Pay rates tab
- Select the applicable rate for each service type
- Save
A class only earns pay when its instructor has a rate selected for that class's service type. If no rate is selected (for example, a service type you created after setting up pay rates, or one an instructor started teaching later), the payroll report shows that class as Missing pay rate and pays $0 for it. When you add a new service type, or assign an instructor to one they haven't taught before, select a rate for it on their Pay Rates tab.
Pay rate templates
If multiple instructors share the same pay structure, you can create a pay rate template and apply it in bulk:
- Go to Staff → Team → Pay Rate Templates
- Click Create new
- Name it and select the pay rates that apply
- Click Create template
To apply a template to an instructor:
- Go to their Pay rates tab and check Add default rates
- Select the template from the Apply a pay rate template dropdown
The template applies all included rates at once.