Tech flat-rate pay, commission blends, DOT drug testing, and the service-advisor turnover problem. One specialist for dealerships, body shops, and independents. Payroll Friday morning, every Friday.
$0K
Dealership median WC class-code adjustment exposure
0%
Commission reconciliation accuracy under Dave
Zero
Pay disputes on M.O.'s 4-rooftop dealer group
Tipped Detail & Lot Staff
We classify tipped, hourly, and piece-rate detail staff under the correct FLSA categories with tip-credit math, Form 8027 tracking, and accurate W2 box 1/5/7 reporting.
Every detailer, lot porter, valet, and shuttle driver classified under the correct FLSA category with tip-credit math, Form 8027 tracking, and W-2 box 1/5/7 reconciled each cycle.
What you're exposed to FLSA §203(m) violation on tipped detailers/porters = back wages × 2 + liquidated damages. DOL dealership median recovery: $5,100/tipped employee.
In practice "Wage-and-hour is where firms bleed. I run the audit before DOL does." Jenifer V, HR Advisor
Multi-Class Workers' Comp
Our PEO master policy rates technicians, body shop, sales, and office staff under correct class codes with pay-as-you-go premiums. No year-end audit shock.
Every technician, body shop, sales, and office class code audited at onboarding. Pay-as-you-go premiums track actual payroll. Zero year-end audit shock.
What you're exposed to Mis-coded WC across service / body / sales triggers a 3-year retroactive premium recalc. Dealership median adjustment: $60K–$240K.
In practice "Every claim file is mine from intake to closure. No handoffs, no dropped balls, no surprises at renewal." Rick, Workers' Comp Specialist
Service Tech Recruiting
We shop medical, dental, vision, and 401(k) match across all carriers for single-rooftop dealerships, so your offer competes with the big dealer groups instead of defaulting to one renewal.
100% of medical, dental, vision, and 401(k) match enrollment administered, with carriers shopped each renewal for the competitive rates our carrier relationships earn. Single-rooftop dealers see real quotes from across the carrier market.
What you're exposed to Cost of replacing one certified ASE tech: $15K–$30K fully loaded. At 35% annual tech turnover on 12 techs: $100K+/year.
In practice "Your first 30 days with us. I run it. Personally. Every handoff, every onboarding, every question." Jena Glazier, Client Success Manager
F&I Benefits Competition
High-earning F&I managers compare total comp before they accept. The medical, dental, and 401(k) match we shop for you keeps them off the open market.
Every F&I producer enrolled in medical, dental, and 401(k) match shopped across the carrier market. Zero tier-drop versus the big dealer groups they'd otherwise leave for.
What you're exposed to F&I producer comp plan misclassification = back wages × 2 + liquidated damages. Product penetration attrition on weak benefits = 2–4 deals/month per producer.
In practice "Open enrollment isn't a scramble for the teams I run. It's a scheduled meeting." Jennifer C, Benefits Director
Multi-Rooftop HR
Every rooftop in your group runs on one payroll, one benefits platform, one WC policy, and one consolidated invoice. With location-specific compliance handled in the background.
Every rooftop runs on one payroll, one benefits platform, one WC policy, and one consolidated invoice. All 50 states supported with zero cross-location errors.
What you're exposed to State penalty for unregistered employment averages $5K–$50K per state per year. A 4-rooftop multi-state dealer group missing one = $160K+ exposure.
In practice "New state? I've done it in an afternoon. Most shops quote you six weeks. The six weeks is the broker, not the work." Dave Harris, Accounting Lead
DMS Integration
We ingest CDK, Reynolds ERA, Dealertrack, and DealerSocket exports directly into pay codes. Flag hours, deal splits, and F&I product overrides post correctly without re-keying.
Every flag hour, deal split, and F&I product override from CDK, Reynolds ERA, Dealertrack, and DealerSocket posts directly to pay codes. Zero re-keying.
What you're exposed to Disconnected DMS + payroll systems leak 1–3% of gross payroll annually through manual reconciliation errors. On $8M dealer payroll: $80K–$240K/year.
In practice "HRIS integrations live on my desk. When dispatch data doesn't flow to payroll, I'm the one who fixes it." Ryan Joyce, Integrations Lead
Sales Floor Onboarding
Digital I-9, W-4, EEO, MVR, dealer-tag docs, and benefits eligibility flow through one mobile workflow. New salespeople are demo-ready morning of day one, not day six.
Every I-9, W-4, EEO, MVR, dealer-tag doc, and benefits enrollment completed on the hire's phone before their first customer walks the lot.
What you're exposed to Cost of replacing one sales hire: $3K–$7K per exit. At 80% first-year turnover on 20 salespeople: $60K–$112K/year.
In practice "I ramp 50 seasonal hires the same way I ramp 500. The playbook doesn't care about headcount." Jena Glazier, Client Success Manager
Variable Comp Payroll
We configure draw structures, commission reconciliation, spiffs, and F&I back-end pay with per-period minimum wage testing. Clean W2s, no quarter-end correction runs.
Every draw, commission, spiff, and F&I back-end deal reconciled to the cent with per-period minimum wage testing. Zero quarter-end correction runs.
What you're exposed to Misclassified "exempt" F&I managers: back overtime × 2 years + liquidated damages. Median dealership exposure: $85K per misclassified manager.
In practice "Our variable-comp plan had grid changes mid-month, spiffs, and pack-backs across 4 rooftops. Dave reconciled every commission to the penny on cycle one. We haven't had a pay dispute since." M.O., Dealer Principal, 4-rooftop northern Utah dealer group
Multi-State SUI & OEM Audits
As employer of record we hold every state SUI account, run paid-sick accrual, enforce final-paycheck timing, and retain ASE certs and CSI demographics for OEM reviews.
Every state SUI account held as employer of record with paid-sick accrual, final-paycheck enforcement, and ASE + CSI demographics archived for OEM review. All 50 states.
What you're exposed to State penalty for unregistered employment averages $5K–$50K per state per year + back withholding + interest. Each missed state stacks.
In practice "New state hire? I have the registration, the notice, and the setup done before their first timecard." Dave Harris, Accounting Lead
Manager Comp Plans
Base, percentage-of-gross, CSI bonus, ELR component, and absorption targets are documented as named pay structures. Every check posts with the supporting math attached.
Every service, body shop, and fixed-ops check posts with base, percentage-of-gross, CSI bonus, ELR, and absorption math attached. Zero dispute cycles.
What you're exposed to Mis-classified GM / manager comp plans trigger back overtime × 2 years + liquidated damages. Median exposure: $140K per misclassified manager role.
In practice "Employee relations issues come to me first. Not a portal, not a ticket. My phone." Jenifer V, HR Advisor
BUILT-IN BENEFIT · ZERO EMPLOYER COST
Service techs, sales associates, lot workers, and detailers can't always wait two weeks for payday. ZayZoon gives every service tech and sales associate instant access to earned wages from the shop or showroom. No payday loans, no predatory fees, no cost to your dealership.
From a single franchise point to a multi-brand dealer group. Our PEO model handles the full range of dealership HR complexity.
You own the rooftop. You sign the floor plan, the manufacturer agreement, and every payroll wire. A single-brand franchise dealership with a service department, F&I office, and sales floor, and the very real concern that one wage-and-hour complaint or one workers' comp audit adjustment can dwarf a month of profit. You need draw-against-commission payroll configured correctly, multi-class WC rated to actual exposure, group benefits that compete with the dealer group down the street, and one HR specialist who already understands flat-rate, F&I product penetration, and CDK or Reynolds extracts. Without the overhead of an in-house HR team.
You are the controller or CFO inside a 2-to-15 rooftop dealer group, potentially spanning multiple OEM franchises and multiple states. Your problem is not running payroll. It is reconciling payroll, workers' comp, benefits invoices, and 401(k) census data across rooftops that each grew up on different systems. You need a single employer-of-record structure, one consolidated invoice, one workers' comp policy with correct multi-class rating across every store, ACA reporting that rolls up cleanly to the controlled-group level, and 401(k) census data you can hand to your TPA without spending a week scrubbing it. One platform, one log-in, one dedicated team for every rooftop in the group.
You run an independent used-car operation or a buy-here-pay-here store without the OEM infrastructure of a franchise point. Your sales team is small, your service write-up runs through one or two service advisors, and your collections function lives next to the cashier. You need clean payroll for hybrid hourly/commissioned sales staff, the ability to offer real group medical and dental against the franchised dealer recruiting next door, workers' comp that doesn't punish you for having a small detail crew, and an HR specialist who picks up the phone the first time something blows up. Not a ticket queue.
Three rooftops, two OEM franchises, one CDK install, and zero in-house HR people. Before VertiSource we were re-keying flag time out of CDK into a payroll system that had no idea what flat rate was, and our office manager spent every Monday rebuilding commission spreadsheets by hand.
Now the DMS export hits payroll directly, the workers' comp class codes are right for service and body shop, and we get one consolidated invoice for the whole group. We pay one bill and it all works. The controller-grade reconciliation routine that used to consume the better part of a workday each pay period now runs as an exception-only review. The dealer principal stopped getting Friday-afternoon commission disputes from senior salespeople. The workers' comp annual audit produced no material adjustment for the first time in three years. Because the multi-class rating finally matched what each employee actually does.
"We pay one bill and it all works. When the office manager who handled everything HR left mid-year, the rooftops kept running because the VSHR team already knew the pay plans, the deal-log mapping, and the F&I product penetration overrides cold."
Every regulation we handle on your behalf. Tap to expand.
Draw against commission, flat commission, volume bonuses, manufacturer spiffs, and back-end finance bonuses. Automotive sales compensation is among the most complex in any retail industry. Most payroll providers have never configured a draw-against-commission structure that passes minimum wage testing.
How we solve this →A dealership employs technicians (elevated risk), body shop workers (very high risk), detail staff (moderate risk), and sales and office personnel (low risk). All under one roof. Incorrect workers' comp class coding overcharges on low-risk staff and creates audit exposure at year end.
How we solve this →Experienced service technicians. Particularly A-techs and master-certified mechanics. Have more job offers than interview slots. Dealerships that can't offer competitive medical, dental, 401(k), and supplemental benefits lose technicians to the dealer group down the street before the compensation discussion even starts.
How we solve this →Finance and Insurance managers are revenue drivers. A great F&I manager generates significant back-end profit per deal. These positions command competitive base salaries and benefit expectations that match their income contribution. Thin benefits packages lose F&I talent to large dealer groups that can underwrite better packages at scale. F&I product penetration bonuses, override structures, and chargeback handling on cancelled service contracts add a layer of compensation complexity that generic payroll providers fumble.
How we solve this →Your dealer management system is the source of truth. Flag hours, deal logs, F&I product penetration, RO history. Most payroll providers have no clue how to consume a CDK Global flat-file export, a Reynolds & Reynolds ERA report, or a Dealertrack DMS pull, so an office manager spends every Monday morning reformatting columns in Excel and re-keying numbers. Errors compound. Salespeople dispute commission runs against deal jackets the payroll provider never saw.
How we solve this →Detail bay employees, lot porters, valet runners, and shuttle drivers sit at the intersection of FLSA tip-credit rules, Form 8027 reporting, piece-rate wage testing, and W2 box 7 requirements. Most dealerships flatten everything to "hourly" because it's easier, and quietly accumulate Department of Labor exposure that surfaces during the next wage-and-hour audit or unemployment claim.
How we solve this →A dealer group with three or five locations has the HR complexity of three or five separate employers. Different state requirements, separate workers' comp filings, inconsistent benefits elections, no centralized employee records, and almost never has a dedicated HR person at each location to manage any of it.
How we solve this →The most common questions we get from dealer principals, office managers, and GM-level operators.
Yes. Single-location dealerships and multi-rooftop auto groups use PEOs to manage the complex HR challenges of the automotive retail industry. Variable compensation payroll for sales and F&I staff, workers' comp for service department technicians, and benefits competitive enough to retain top salespeople. The co-employment structure works well with dealership operations and is increasingly common among growing dealer groups that want to centralize HR without adding dedicated HR headcount at each location.
Dealership sales compensation. Draw against commission, flat commission, bonuses, and spiff payments. Requires payroll software and a team that understands automotive comp structures. We configure your payroll to handle commissioned salespeople correctly, including minimum wage testing each pay period to ensure total compensation meets minimum wage in lower-volume months, accurate W2 reporting for all compensation types, and correct handling of manufacturer incentive programs and back-end finance bonuses.
Auto dealership workers' comp must cover multiple risk classifications simultaneously: service technicians (elevated risk), body shop workers (very high risk), and office and sales staff (low risk). Through our PEO, dealerships access workers' comp coverage with correct multi-class rating applied to each employee category, so you're not overpaying on low-risk administrative staff, and claims management experience specific to automotive operations including mechanical injury and body shop chemical exposure claims.
Yes. Experienced service technicians and F&I managers have significant leverage in the current market. Through our PEO, your dealership accesses medical, dental, and 401(k) benefits shopped across all carriers, competitive with large dealer groups. Helping you recruit and retain the experienced staff that drives your profitability. Service managers and F&I managers specifically compare benefits packages when evaluating competing offers, and a quality package through our PEO puts single-point dealers on equal footing with larger competitors.
Multi-location auto groups face the same challenge as any multi-location employer: different state laws where applicable, separate workers' comp needs per location, and the overhead of managing HR across multiple sites without dedicated HR staff at each. Our PEO model centralizes all HR administration. Payroll, benefits, compliance, workers' comp. Under a single platform for every location in the group. One invoice covers the whole group. One HR specialist knows all your locations. One login gives you HR visibility across every rooftop.
Yes. We accept native exports from CDK Global, Reynolds & Reynolds ERA, Dealertrack DMS, Auto/Mate, and DealerSocket. Flag-hour reports for service technicians, deal logs for sales department commissions, and F&I product penetration reports for back-end overrides. Our payroll team maps DMS fields directly to pay codes during onboarding so the office manager stops re-keying spreadsheets every Monday morning. When CDK posts a finalized RDR (retail delivery report), the deal flows to payroll the same way it flows to the deal jacket. Split commissions, house deals, half deals, and all.
Flat-rate technician compensation pays the tech for billable book hours per repair order rather than clock hours, and the FLSA still requires a regular-rate calculation and overtime obligation when actual hours worked exceed 40 in a workweek. We configure your service department payroll to track both flag time (paid at the technician's flat rate) and clock time (for FLSA compliance), automatically perform the regular-rate-of-pay calculation, and pay the half-time premium owed on overtime hours. We also handle tool allowances, ASE certification bonuses, and CSI-based incentives. All common dealership pay components most generic providers fumble.
Detail bay employees, valet runners, and lot porters who receive customer tips fall under FLSA tip-credit rules. We configure tipped employees with the federal (or applicable state) tip-credit minimum cash wage, automatic top-up logic when reported tips don't bring the employee to the full minimum hourly wage for the workweek, Form 8027 (Employer's Annual Information Return of Tip Income) tracking for operations that meet the eight-employee threshold, and accurate W2 box 1, box 5, and box 7 reporting at year end. Piece-rate detail compensation also receives proper minimum-wage testing per workweek. When the next wage-and-hour audit lands, the file holds up.
Click any state to see minimum wage, paid leave, pay transparency laws, and upcoming deadlines.
Open state compliance map →Whether you run a single franchise point or a multi-brand dealer group, we will show you exactly how our PEO handles variable comp payroll, multi-class workers' comp, service tech benefits, and multi-location HR. In one conversation.
Talk to a Dealership HR Specialist → 855-565-8747
