Payroll Rules
Payroll rules define how Conductly calculates instructor compensation. You set up the rules, and Conductly applies them automatically each time a lesson is taught or a billing cycle is processed.
Payroll Rule Types
Conductly supports five payroll rule types. Each type uses a different method to calculate the instructor's pay.
Flat Hourly
The instructor is paid a fixed dollar amount per hour of teaching.
How it works: The lesson duration (in hours) is multiplied by the hourly rate.
Example: An instructor with a $40/hour rate teaches a 45-minute lesson.
- Calculation: 0.75 hours x $40 = $30.00
Best for: Schools with straightforward hourly compensation.
Percentage of Revenue
The instructor receives a percentage of the revenue generated from student billing for their lessons.
How it works: When a billing cycle is processed, Conductly calculates the total revenue from the instructor's students and applies the percentage.
Example: An instructor has a 60% revenue share. Their students generated $2,000 in billing for the cycle.
- Calculation: $2,000 x 60% = $1,200.00
Best for: Schools where instructors earn a share of tuition revenue.
Flat Amount
The instructor receives a fixed dollar amount for each lesson taught, regardless of duration.
How it works: Each lesson occurrence generates a single flat payment.
Example: An instructor with a $35 flat rate teaches a lesson.
- Calculation: 1 lesson x $35 = $35.00
Best for: Simple per-lesson payment structures where lesson duration doesn't vary much.
Number of Students
The instructor's pay is calculated based on the number of students in a class. A base rate is paid, plus an additional amount for each student.
How it works: A per-student rate is multiplied by the number of students attending the class.
Example: An instructor has a $10/student rate and teaches a group class with 8 students.
- Calculation: 8 students x $10 = $80.00
Best for: Group classes where you want compensation to scale with attendance.
None
No automatic compensation is calculated for the instructor or session. Use this when:
- An instructor is salaried and not paid per lesson
- A session is unpaid (e.g., volunteer-led)
- You handle compensation entirely outside of Conductly
Rule Hierarchy
Conductly uses a hierarchy to determine which rule applies to any given lesson. More specific rules always override less specific ones:
1. Session Override (most specific — applies to one course session)
2. Instructor Override (applies to one instructor across all their sessions)
3. Organization Default (applies to everyone unless overridden)
If no rule is set at any level, no earnings are generated for that lesson.
How the Hierarchy Works in Practice
| Scenario | Which Rule Applies |
|---|---|
| Organization default is Flat Hourly at $40/hr. No overrides set. | $40/hr Flat Hourly (organization default) |
| Organization default is $40/hr. Instructor has an override of $50/hr. | $50/hr Flat Hourly (instructor override) |
| Organization default is $40/hr. Instructor override is $50/hr. Session override is 60% revenue share. | 60% Percentage of Revenue (session override) |
Setting Up the Organization Default
The organization default is the baseline payroll rule for your entire school.
- Go to Settings in the sidebar.
- Click Payroll.
- Under Default Payroll Rule, select a rule type.
- Enter the rate or percentage.
- Click Save.
Set your organization default to the compensation model used by the majority of your instructors. You can then add overrides for the exceptions.
Setting an Instructor Override
To set a custom payroll rule for a specific instructor:
- Go to Instructors in the sidebar.
- Open the instructor's detail page.
- Look for the Payroll section.
- Click Set Override (or Edit if one already exists).
- Select the rule type and enter the rate.
- Click Save.
The override applies to all lessons this instructor teaches, unless a session-level override is also set.
Setting a Session Override
To set a custom payroll rule for a specific course session:
- Go to Courses in the sidebar.
- Open the course, then open the specific session.
- Look for the Payroll section on the session detail page.
- Click Set Override (or Edit if one already exists).
- Select the rule type and enter the rate.
- Click Save.
The session override takes precedence over both the instructor override and the organization default.
Session overrides are useful when a particular class has a unique compensation arrangement — for example, a master class where the instructor earns a higher rate, or a community event that's unpaid.
Versioned Rules with Effective Dates
Payroll rules in Conductly are versioned. When you change a rule, the old rule is preserved with its effective date range, and the new rule takes effect from the date you specify.
This means:
- Historical earnings are not affected when you change a rule. Earnings that were already calculated under the old rule remain as they were.
- Future earnings use the new rule starting from its effective date.
- You can view the history of rule changes to see what rate was in effect at any point in time.
Example: You change an instructor's rate from $40/hr to $45/hr effective March 1. Lessons taught in February are still calculated at $40/hr. Lessons from March 1 onward use $45/hr.
When changing payroll rules, double-check the effective date. Setting the wrong date could cause earnings to be calculated at the wrong rate for a period.
Tips for Managing Payroll Rules
- Start simple. Set an organization default first. You can always add overrides later as needed.
- Document your reasoning. When you set an override, make a note of why (e.g., "Higher rate for master class series" or "Custom agreement with instructor").
- Review rules periodically. As rates change or instructor agreements are updated, make sure the rules in Conductly reflect the current terms.
- Use effective dates carefully. When updating a rate, set the effective date to match the agreed-upon start date for the new rate.
- Test with a sample lesson. After setting up rules, check that a recent lesson's earning was calculated correctly to confirm everything is working as expected.