This article will show you how to set up your self-employed staff on PhorestPay so that they can receive direct payments into their own bank account(s).
Feature in Testing
This feature is currently in testing but will be available very soon.
PhorestPay Card Terminal Required
You must be using a PhorestPay Card Terminal to set up PhorestPay accounts for your self employed staff. If you are interested in ordering a Card Terminal, click here.
In this Article
Setting up a Self Employed Staff Member
Go to Manager > Staff Members > Click on a staff member to open their profile > Self Employed.
Change the Self Employed setting to Yes, add the staff's own business details if you like (optional), then change Individual merchant account to Yes and click Save.
If you add the Business Name or Tax Number of a self-employed staff member, their own business details will be displayed on receipts for their own sales instead of your business details.
If you have multiple locations in Phorest, you can choose to apply the change to all locations. This means that once the staff member's PhorestPay account is fully set up, sales from all locations will be paid directly to the self-employed staff member.
Completing the Setup in PhorestGo 2.0
After updating their staff profile, the self-employed staff member must complete the rest of the setup using PhorestGo 2.0.
In PhorestGo 2.0
To continue with the setup, the staff member must log into PhorestGo 2.0, tap the Set-up PhorestPay button at the top of the sidebar menu, and then create their PhorestPay account.
If your self-employed staff member does not see this button, restart PhorestGo 2.0.
Once the self-employed staff member creates and verifies their PhorestPay account, the status of their Individual Merchant Account on their staff profile will change to Active.
All corresponding payments will then be sent to the self-employed staff's own PhorestPay account, and any relevant PhorestPay fees will be charged to the self-employed staff member.
Payments Processed While Account is Being Created
If the self-employed staff member processes any payments after the Individual merchant account setting has been enabled but before they have completed creating their PhorestPay account, these funds will be held until the PhorestPay account is fully verified. The self-employed staff member will need to provide our payments partner, Stripe, with a photo ID and information about their business registration, which Stripe verifies as part of its account opening process.
Once the PhorestPay account is created, the funds will be transferred to the self-employed staff member's account.
Sending Retail Product Sales to the Business
You can control whether retail sales funds are sent to the business account or staff's account by adjusting the Send Retail Sales To Business setting in Manager > PhorestPay > Settings.
Enabling this setting will send funds from retail sales to the business's PhorestPay account while disabling it will send funds to each self-employed staff member's PhorestPay account.
This setting is Disabled by default.
Self-Employed Reporting, Invoices & Account Management
Once your self-employed staff creates their account, they can access the PhorestPay section in PhorestGo 2.0. This section allows them to review their payouts, check the transaction list, generate reports, view and download their PhorestPay invoices, and adjust their account settings.
Reports can also be exported to CSV and scheduled to be emailed to themselves or to a 3rd party.
These reports will only include sales and funds related to the self-employed staff member, while all other business sales and funds will be accessible through Phorest on your computer.
FAQs
As the business owner, does it cost me anything extra to have self-employed staff using PhorestPay?
No, there is no additional charge from Phorest. Self-employed staff will have their own transaction fees.
One of my team was self-employed and is now directly employed, what do I need to do?
Go to Manager > Staff Members > Click on the staff member to edit their profile > Self Employed > Change the Individual Merchant Account setting back to No. Once changed, sales for this staff member will be routed to the business PhorestPay account.
How will chargebacks work with clients of self-employed staff?
Chargebacks will be raised against the business, as they are the merchant of record. You should discuss and set up an internal process with your self-employed staff member on how to manage these if/when they happen. Businesses receive a notification for every chargeback that occurs. Click here for more information on how Chargebacks work and how you can challenge them.
Are there any sales types that don't go to the self-employed staff member?
Yes, some sales are always considered business sales and, therefore, will always be routed to the business PhorestPay account. These sales are:
- Custom Fees
- Membership purchases and redemptions
- Online Store sales (including sales from Expert Recommendations)
- Online Gift Card sales
- Gift Card redemptions, where the Gift Card was originally sold under the business merchant account rather than a self-employed staff's account.
How do Online Booking Deposits & In-House Deposits work?
Funds for deposits paid through PhorestPay will land in the self-employed staff's PhorestPay account for each service booked with that staff member.
How do sales split between self-employed and non-self-employed staff work?
Funds will be routed through PhorestPay accordingly. Any items under the self-employed staff member will go toward their own account, while the remaining items will go toward the business account.
Have you encountered an issue with this setup?
If you have come across an issue with your setup for PhorestPay as a self-employed staff member, please complete this form to request help from a PhorestPay expert.