Premium Pay Types

Premium Pay Types are used to define the format by which pay is issued. The following tables describes the Premium Pay types:

Table 6-2 Premium Pay Types

Premium Pay Type	Description
Amount	An amount is a flat hourly rate amount or percentage of minimum wage, primary job, highest clocked in rate, or current clocked in rate that can be awarded to the employee. If you select this type, enter a Start Time and End Time. You must specify the method by which hourly rates are increased. You can select a flat amount or a percentage increase. For example, an employee who is working on December 25th receives an extra $50 in compensation for Holiday Work. This would be a flat amount. If you select Flat Amount, you must enter the amount by which to pay the employee. If you select Percentage, you must first identify the percentage of increase or decrease and then specify the basis of the increase or decrease. That is, what existing rate is being increased or decreased by the percentage.
Hours	Selecting this type denotes that employees will be paid for the hours they worked and at a flat hourly rate amount or percentage of an existing wage. If you select this type, you must specify how many additional hours are paid at a premium rate. Additionally, you must define how the premium pay will be administered, a flat amount or a percentage of an existing pay rate.
Split Shift	State law can require that an employee be paid for an extra hour of work if the employee is scheduled to work two shifts in a day that are more than 1 hour apart. This extra hour is paid to the employee, but may not be included in overtime hours. If you select this type, Oracle Hospitality recommends entering the minimum and maximum number of hours between shifts that must pass before premium pay is eligible. For example, some states have laws that dictate that if an employee is scheduled to work a split shift, and the shifts are more than 1 hour apart, the employee must be compensated for that hour. Similar to the Amount and Hours Premium Pay Types, you must specify how the premium pay will be administered, a flat amount or a percentage of an existing pay rate.

Premium Pay Type

Description

Amount

An amount is a flat hourly rate amount or percentage of minimum wage, primary job, highest clocked in rate, or current clocked in rate that can be awarded to the employee. If you select this type, enter a Start Time and End Time. You must specify the method by which hourly rates are increased. You can select a flat amount or a percentage increase.

For example, an employee who is working on December 25th receives an extra $50 in compensation for Holiday Work. This would be a flat amount. If you select Flat Amount, you must enter the amount by which to pay the employee.

If you select Percentage, you must first identify the percentage of increase or decrease and then specify the basis of the increase or decrease. That is, what existing rate is being increased or decreased by the percentage.

Hours

Selecting this type denotes that employees will be paid for the hours they worked and at a flat hourly rate amount or percentage of an existing wage. If you select this type, you must specify how many additional hours are paid at a premium rate. Additionally, you must define how the premium pay will be administered, a flat amount or a percentage of an existing pay rate.

Split Shift

State law can require that an employee be paid for an extra hour of work if the employee is scheduled to work two shifts in a day that are more than 1 hour apart. This extra hour is paid to the employee, but may not be included in overtime hours.

If you select this type, Oracle Hospitality recommends entering the minimum and maximum number of hours between shifts that must pass before premium pay is eligible. For example, some states have laws that dictate that if an employee is scheduled to work a split shift, and the shifts are more than 1 hour apart, the employee must be compensated for that hour.

Similar to the Amount and Hours Premium Pay Types, you must specify how the premium pay will be administered, a flat amount or a percentage of an existing pay rate.

Parent topic: Payroll Preprocessing Administration