Premiums are 'extra' pay that an employee receives on top of his/her normal pay rate. Once created, these premiums must applied to the corresponding Shifts.
Select Premiums from the Setup menu, click Add. The 'Premium Codes' window will appear:
Enter a Premium code (maximum of 6 characters)
Enter a brief description for the Premium.
Choose the type of Premium you wish to apply. A complete description of each type of premium is provided at the end of this section.
Where Banked Overtime is involved, you have the option to pay out the premiums attached to the overtime hours. Check the box to enable ...
Apply the Premium to the days of the week that the premium is to be applied. Click on the appropriate check box.
To pay Overtime on the Premium, single click the text box next to the 'Pay Overtime on this Premium' label. Single clicking will toggle the text box with Y or N. Determine whether the Overtime is to be calculated on the Overtime rate or the Base Rate:
Example:
An employee is assigned to a Shift called 8hrAft. He/She works 2hrs Overtime at Time and a Half (1.5).
The shift Premium is $00.50hr.
If you want the rate calculated on the Base rate , click the 'Base Rate' radio button.
2hrs @ $00.50hr = $01.00 overtime premium
If you want the rate calculated on the Overtime rate, click the 'Overtime Rate' radio button.
2hrs @ $00.75hr = $01.50 overtime premium (Premium Overtime rate = 00.50 * 1.5)
Note: This option is only enabled for Hourly and Time Zoned based Premiums.
If you simply wish to pay the premium at the regular rate for the entire number of hours worked, set the 'Pay Overtime on this Premium' to N and check the box labeled Pay Premium on all hours worked ...
Enter the Earning Codes and General Ledger Account Numbers for Regular time, Time and a half (1.5), and Double Time (2.0) (Optional). As explained earlier, these codes are for use with the Payroll Export, you may or may not require them.
Click the OK button to save the Premium.
Note: If you click Exit before clicking OK, the new Premium will not be saved!
Exit the window, the 'Premiums' setup window will appear. At this point you can either Add / Edit / Copy / Delete a Premium, Renumber an existing Premium code or Exit the window.
With the Hourly premium, you can specify either a dollar or percentage amount to add to the pay rate.
If you want the premium to be applied as a premium record in Edit Time and Attendance, Payroll Export where all the data from Employee Tracker is gathered and sorted into earning codes and exported to a data file. The data file is then imported into the company payroll program. , and the various Reports, Click the check box marked ' Always apply as a Premium Record'.
For the dollar amount, enter the amount in the box labeled 'Hourly Rate' (format 00.00).
For the percentage amount, enter the percentage in the 'Rate Increase' box (format .00, cannot exceed .99).
The Single premium is a fixed amount that will be added to a shift. You can specify a Fixed dollar amount or a percentage amount for the shift.
Fixed Dollar Amount
Add a $25.00 premium to the shift. 8hrs @ $10.00 = $80.00reg + $25.00premium = $105.00 for the shift.
Rate Percentage
Add a 10% premium to the shift. 8hrs @ $10.00 = $80.00reg * 10% = $08.00premium = $88.00 for the shift.
The Factor Based premium is useful for manipulating existing rates by multiplying the rate and dividing it to come out with a new rate without having to set up a new position. It can be used when you have new employees who start out 'On Probation' and may have a rate that is 75% of the full rate for their particular position.
Enter the Multiplicand (in the example above, it would be .75)
Enter the Divisor (in the example above, it would be 1)
If you want this premium always to be applied as a premium, click the check box.
The Time Zone based premium allows you to specify a window of time in which a premium will be applied to a shift.
Enter the Rate ($00.00hr).
Specify the Time window using the 24 hour clock. i.e. 23:00 to 07:00 (11:00pm to 07:00am)
Decide how much time the employee must work before the premium will be applied and enter the amount in the 'Pay After' box. i.e. 04:00 (4 hours)
Click the check box marked 'Pay all time if above conditions met' if the employee has met the conditions set.
Click the check box marked 'Treat times/days as contiguous time zone' if you want a group of days treated as one continuous time zone. If using this option, it will only work if the time zone is between 2 or more days and 6 or less day. (Cannot have all 7 days checked off).
If automatic deductions (such as a half hour lunch break) are to be ignored when calculating the premium, check the box labeled 'Disregard any automatic deductions/additions found in the Time calculation rule'.
Set the Rounding by clicking on the drop down arrow. This will round the employees clock out times.
example:
You can set up a contiguous time zone to run from 11:00pm on Friday evening to 11:00pm on a Sunday evening. The premium would only be calculated on hours that fall between these two times.
This type of premium is useful if you want to pay a premium after a certain amount of time has elapsed in an employees shift.
Enter the number of hours/minutes (00:00) that must elapse before the premium will be calculated.
Enter the Hourly Rate (00.00) to be applied to the shift.
If you want the premium to apply to the entire shift after the specified amount of time has elapsed, click the check box labeled 'Pay the entire time worked'
The 'On Call' premium is used to pay employees who may be off the premises, but still on call. They are usually paid an hourly amount while on call.
Enter the amount to be paid per day.
If the employee is to be paid the 'On Call' for the entire shift, regardless of whether or not they were called in, select 'do not subtract' from the drop down box.
If the employee was called in and is NOT to receive the 'On Call' pay while working, select 'subtract' from the drop down box.
Check the box labeled 'Link to the schedule' if the you want the premium to be calculated based on the employees' schedule.
Check the box labeled 'Include absent days' if the premium is to be automatically attached to certain (or all) absent records. Put a check in the boxes of the absent codes to be included. Use the button to select all absent codes.
If you are going to include this premium with any overtime worked, select 'Y' from the box labeled 'Pay overtime on this premium'.
There are two choices for calculating the premium amount.
Overtime Rate ... calculates the premium rate * the overtime (time and a half, double time etc.)
e.g. Premium base rate $00.60/hr * 1.5 = $00.90/hr
Base Rate ... calculates the premium strictly at the base rate for all hours. In the case above, $00.60/hr for ALL hours.
If overtime is not to be paid on this premium, select 'N' from the 'Pay overtime on this premium' box. The 'Pay on all Hours worked' check box will become enabled. Put a check here if the premium is to be paid for all worked hours, where no overtime is calculated at all.