Premium Rules

How to get to this page: Configuration tab > Rules > Pay Groups > Edit Pay Group > Premium Rules tab

In this section you configure Premium Rules. A premium is a special rate or allocation attached to a specified group of employees. The premium can be associated with a particular shift, days worked, location/department, or pay type. It can be a dollar or percentage amount added on top of the standard pay rate. For example, a premium can be attached to a group of employees who work the third shift. This does not affect the standard rate of pay for each individual.

Any pay type to which premiums are going to be applied must be configured so in the pay type configuration. For each pay group, you first set high-level, general configuration parameters. You can create individual rules for the pay group.

Click New Premium Rule. There are five sections (tabs) for setting up a new premium rule. Click the following links in order and follow the instruction steps:

General tab (default)

Assign a unique identifier as the Rule ID and enter a Rule Description.

If you want this premium rule to be available in the system, click to place a check mark next to Active (default).

If you want miscellaneous pay entries that use a pay type configured as both Considered Worked and Credit Premium to be included in the premium calculation, click to place a check mark next to Include Misc.
Specify Pre Qualification options by selecting one of the four available options:

None – no pre-qualification requirements are applied.
Master Schedule – select this option if an employee must be assigned to a specific schedule. Click and in the pop-up list click to select the schedule and click OK.
Employee Schedule – select this option if the employee's schedule is going to be applied as the basis of the premium calculation.
Fixed Time Window – select this option to apply the premium rule calculation to a fixed time window, such as 11 PM to 7 AM. Enter the Start Time and End Time for the fixed time window by clicking the respective and choosing the time from the drop-down list.

Click to choose the Day on which to apply the fixed time window:

Current Day – the employee must work on the current day during the hours specified in the time window in order for the premium calculation to be applied.
Day Before – the employee must have worked the previous day during the hours specified in the time window in order for the premium calculation to be applied.
Day After – the employee must work the upcoming day during the hours specified in the time window in order for the premium calculation to be applied.

Specify the type of Pay Rate Modification. Click the current setting, Fixed Hours (default), in the pop-up dialog click to choose one of the following options, and click OK:

Fixed Amount – applies a fixed amount to an employee's pay rate. Use the arrow keys to enter the additional amount in the Add To field.
Percentage – a percentage increase is applied to the employee's pay rate. Use the arrow keys to enter the additional amount in the Add Percent field.
Alt Rate 1 – pay the premium at the rate specified as Alt Rate 1 in the employee profiles. Note that this amount is not paid in addition to the employee's Primary Rate; the Alt Rate 1 is used in place of the employee's primary rate for the premium calculation.
Alt Rate 2 – pay the premium at the rate specified as Alt Rate 2 in the employee profiles. Note that this amount is not paid in addition to the employee's Primary Rate; the Alt Rate 2 is used in place of the employee's primary rate for the premium calculation.

Pay premium at OT rate on OT hours: when this field is selected, the premium is paid at an overtime rate when the premium is based on overtime hours.

For example, a premium of $1 is paid on all hours worked on Saturday. Joan works 10 hours (8 regular hours and 2 overtime hours):

If this field is selected, the premium is paid as follows: ($1 x 8 regular hours) + ($1.50 x 2 OT1 hours) (assuming the OT rate is time and a half).
If this field is not selected, the premium is paid as follows: ($1 x 8 regular hours) + ($1 x 2 OT1 hours).

Specify the type of Round rule. Click the current setting, Exact (default), in the pop-up dialog click to choose one of the following options, and click OK:

Exact – uses the exact punch times rather than any form of rounding.
Next (Forward) – rounds the time applied up to the next increment. For example, if the increment is set to 15 (minutes) and the employee punches at 7:07, the time applied is 7:15.
Previous (Back) – rounds the time applied down to the next increment. For example, if the increment is set to 15 (minutes) and the employee punches at 7:07, the time applied is 7:00.
Near (Mid Point) – rounds the time applied either up or down to the next or previous increment, respectively, based on the mid- or crossover-point. For example, let's assume the increment is 15 and the mid-point is 7. If an employee punches at 7:07, the time applied is 7:00. Conversely, if the employee punches at 7:08 the time applied is 7:15.
Increment Table – selects a timetable created in the rounding table section. Uses the table types defined as minute range. Note that rounding tables must be created prior to being selected here.

Choose the Use Dept/Pos on Pay Detail setting to determine how the premium is applied and recorded against the designated department/position code:

Employee Home – the department/position entered in the employee profiles.
Time Card – the department/position assigned to the hours that the employees worked. Note that this may be different from the department/position entered in the employee profile if department/position transfers are done by employees at the time clock.
Scheduled – the department/position entered in the employee schedules.
Fixed – to designate the position to which the premium calculation is assigned click , in the pop-up list click to choose the position, and click OK.

If the position you want to assign does not appear on screen, you can click and choose respectively a search or sort value, or enter the Pos ID in the Find box and click Go.

Select the Premium Calculation Options check box to indicate that you wish to pay the premium already established by a previous Rule on top of the already existing premium you have created.

Condition tab

The following conditions are available with all Premium rules:

Specify the Employment requirements. Use this field to establish multiple premium definitions, if any, based on seniority, or to set a minimum number of days for employment. Click the current setting, None (default), in the pop-up dialog click to choose and set up one of the following options, and click OK:

None – no employment requirement.
Current Date – specifies a minimum and maximum number of days, as of the current day, for eligibility. Use the arrow keys to enter the minimum and maximum values.
Period Begin – specifies a minimum and maximum number of days, as of the beginning of the pay period, for eligibility. Use the arrow keys to enter the minimum and maximum values.
Period End – specifies a minimum and maximum number of days, as of the end of the pay period, for eligibility. Use the arrow keys to enter the minimum and maximum values.

Specify the Entire Day requirements. Use this field to specify the minimum and maximum number of hours required, if any, before eligibility for the premium calculation is met. Click the current setting, None (default), in the pop-up dialog click to choose and set up one of the following options, and click OK:

None – no requirement.
Min Hours – the employee must work a minimum number of hours before the premium calculation is applied. Use the arrow keys to enter the minimum value.
Max Hours – the maximum number of hour to be worked for an employee to be eligible for the premium calculation. Use the arrow keys to enter the maximum value.
Range – the employee must work at least the minimum but not more than the maximum number hours to be eligible for the premium calculation. Use the arrow keys to enter the minimum and maximum values.

When the General tab Pre Qualification setting is Master Schedule, Employee Schedule or Fixed Time Window, the following additional options are available:

Window - the condition has the same options as the Entire Day condition, but can be expressed as a number of hours (Fixed Hours) or a Percentage. When set to a number of hours, the hours worked within the window are summed and compared to the condition of a minimum number of hours (Min Hrs option), maximum number of hours (Max Hrs option) or a range of hours (Range option). When set to a percentage, the percentage of the day worked during the window is compared to the condition of a minimum percentage of hours, maximum percentage of hours, or a range. A setting of “None” indicates that there is no qualification based on hours worked within the window. The following General Tab Pre Qualification settings affect the behavior of this Window condition.

Master Schedule - window applies to employees with this Master Schedule assigned to their Profile. The window for the day is the time between the scheduled start and stop time as configured for the Master Schedule.
Employee Schedule - window for the day is the time between the scheduled start and stop time of the employee’s schedule for that day.
Fixed Time Window - window for the day is the time between the specified window start and stop times.

Pre Window - the condition is the same as the Window condition, except that only hours in the day worked before the start of the Window are included. Example: if the window is 3pm – 11pm and the employee works 12pm – 5pm, the hours worked between 12pm – 3pm are calculated as the Pre Window hours.
Post Window - the condition is the same as the Window condition, except that only the hours in the day that were worked after the end of the Window are included. Example: if the window is 3pm – 11pm, and the employee works 5pm – 1am, the hours from 11pm – 1am are calculated as the Post Window hours.

Note: The Hours Worked criteria is applied to the entire day, even on a day worked as a split shift.

Paid Sources tab

This section is used to determine the hours on which to pay the premium. Note that all of the options on this tab, with the exception of the fixed hours option, deduct premium hours from the Regular Pay Type if Deduct Premium is selected in the premium pay type configuration.

To activate an option, click the associated check box and follow the instructions:

Scheduled Hours

This premium is applied to the number of hours for which the employee is scheduled. To activate this option, click to place a check mark next to Pay Scheduled.
Assign a pay type by clicking and choosing a pay type in the pop-up list.
Click to apply either Scheduled Hours, or a Percentage of Scheduled Hours. Use the arrow keys to enter the percentage.

Master Scheduled Hours

This premium is applied to the number of hours for which the employee is scheduled per the Master Schedule. To activate this option, click to place a check mark next to Pay Scheduled.
Assign a pay type by clicking and choosing a pay type in the pop-up list.
Click to apply either Scheduled Hours, or a Percentage of Scheduled Hours. Use the arrow keys to enter the percentage.

Fixed Hours

This premium is applied to a fixed number of hours that the employee works. To activate this option, click to place a check mark next to Pay Fixed Hours.
Assign a pay type by clicking and choosing a pay type in the pop-up list.
Use the arrow keys to enter the fixed number of hours.

Fixed Time Window

This premium is applied to a fixed time range. To activate this option, click to place a check mark next to Pay Fixed Window.
Assign a pay type by clicking and choosing a pay type in the pop-up list.
To set the Time Window and To times, click the respective and, in the pop-up list, choose the time.

Relative to Time In

This premium is applied to the number of hours worked within a specified window after the calculated* in punch. For example, hours worked between 3 and 8 hours after the calculated in punch. To activate this option, click to place a check mark next to Pay Relative to Time in.

* The rounded IN punch is used if rounding rules apply.

Assign a pay type by clicking and choosing a pay type in the pop-up list.
Set the number of hours worked within a specified window. For example, if Min = 5 and Max = 7 and the employee works 8 hours, the premium is applied to 2 hours (between the 5th and 7th hour worked).

Use the arrow keys to enter the Min Hours Worked After Punch In.

Use the arrow keys to enter the Max Hours Worked After Punch In.

Select whether to apply Min/Max Hrs Worked or Min/Max Hrs from the IN Punch.

Pay tab

Hours Worked for Entire Day

Used to determine the hours on which to pay the premium.

None – the premium will not be applied to the total hours for the day.
Total Hours – the total hours worked for the day is applied to this premium.
By Pay Type – the hours is charged to the selected pay type. Click the Pay Type button and in the pop-up dialog use the drop-down lists to select the pay types. All Pay Types configured as premium or overtime is available from the premium pay type list.

Pay Misc Type

Specify how this premium rule is to be applied to Miscellaneous Pay by choosing one of the following options:

None – the premium is not applied to miscellaneous pay adjustments.
Total Hours – the premium is applied to miscellaneous pay hours. Click and in the pop-up list click to choose a pay type and click OK.
By Pay Type – the premium is applied to miscellaneous pay hours for selected pay types. Click the Pay Type button and in the pop-up dialog use the drop-down lists to select the pay types.

Hours Worked Pre-Window

None – the premium will not be applied to the hours worked before the window.
Total Hours – the premium is applied to the hours before the window. Click on the Total Hours field and select a premium or overtime pay type from the drop down list.
By Pay Type –. The premium is applied to the hours before the window with the selected pay type. Click on the Pay Type button and select a pay type from the list.

Hours Worked Within -Window

None – the premium will not be applied to the hours worked within the window.
Total Hours – the premium is applied to all hours within the window. Click on the Total Hours field and select a pay type from the drop down list.
By Pay Type – The premium is applied to the hours within the window with the selected pay type. Click on the Pay Type button and select a pay type from the list.

Hours Worked Post-Window

None – the premium will not be applied to the hours worked after the window.
Total Hours – the premium is applied to all hours after the window. Click on the Total Hours field and select a pay type from the drop down list.
By Pay Type – The premium is applied to the hours after the window with the selected pay type. Click on the Pay Type button and select a pay type from the list.

Notes:

When the "Window" is based on Master Schedule or Employee Schedule: the "pre window" period is the period worked before the first scheduled start time for the day and the "post window" period is the period worked after the last scheduled stop time for the day. This distinction applies when the employee is scheduled for multiple schedule segments in a day.
If you choose to include miscellaneous pay, the Include Misc check box on the General tab must be selected, and the selected pay type(s) must be configured to credit premium.

Applies To tab

Specify options for which shifts, days, and levels are applicable to this premium rule. By default, all shifts, days, levels, and pay types are selected. To choose specific options, click to remove a check mark, and click the respective Select button and choose from that list:

All Shifts – when checked this premium rule applies to all shifts. When unchecked the Select Shifts button appears allowing the selection of specific shifts.
All Days – when checked this premium rule applies to all days. When unchecked the Select Days button appears allowing the selection of holidays/special days.
All Levels – when checked this premium rule applies to all levels. When unchecked the Select Levels button appears allowing the selection of specific levels.
All Pay Types – when checked this premium rule applies to all pay types. When unchecked the Select Pay Types button appears, allowing the selection of specific pay types.

Specify the Days Included in this premium rule. Note that Days Included is not applicable to the Relative to Schedule IN Punch. Click to choose one of the following options:

Scheduled – break rule applies to scheduled days only.
Non-Scheduled – break rule applies to non-scheduled days only.
Both – break rule applies to both scheduled and non-scheduled day.

Save your premium rule. When you are finished entering settings, choose one of the following ways to save the new premium rule:

Click Save to save the new premium rule.
Click Save and New to save the premium rule and enter a new holiday rule.
Click Save and Close to save the premium rule and close the new premium rule dialog.