Defining Premium Pay

1. In Reporting and Analytics, click Labor Management, and then click Payroll Preprocessing.
2. In Payroll Preprocessing, click Admin, and then click Premium Pay Rules.
3. On the General tab, enter a Name for the premium pay rule, and then select the date from which this premium pay is effective using the Effective From date editor.
4. (Optional) Configure the following information:

   • Description: Enter a brief description for the premium pay.

   • Include in Labor Costs: Select this option to include Premium Pay in labor costs.

   • Include Minor: Select this option to make this premium pay available for minor employees.

   • Days of Week: Select this option if the premium pay is only available on certain days, and then select the eligible days of the week.

   • Calendar Day: Select this option if the premium pay is only available on a certain day of the year, and then select both the eligible month and day.

   • Calendar Day Range: Select this option if this premium pay is only available for a certain calendar range. For example, Thanksgiving weekend.

     • From Time: Select the start date for the Calendar Day Range by specifying the month and day.

     • To Time: Select the end date for the Calendar Day Range by specifying the month and day.

   • Effective To: Select the date the premium pay becomes inactive.

5. Click the Type tab, select a Premium Pay Type, and then select the start and end times.
6. If you selected Amount as the Premium Pay Type, define how the hourly rate will be increased.
   1. If you want to increase a flat rate, select Flat Amount, and then enter the hourly rate of the premium pay.

      For example, if the default wage is $8 an hour and the premium pay is $10 an hour, then enter 10 in this field.

   2. If you want to increase a percentage of an existing wage, select Percentage, and then enter the percentage to increase.
7. If you selected Hours as the Premium Pay Type, update the following fields as needed:

   • Additional Hours: Enter the number of additional hours that will be paid to an employee if the premium pay conditions are met.

   • Include additional hours in overtime calculations: Select this option to include any additional premium pay hours in the overtime calculations.

   • Pay Rate for Additional Hours: Select the amount for an employee’s hourly rate to be increased for the premium pay. Options include, Flat Amount (requires additional configuration), Minimum Wage Rate, Primary Job Rate, Highest Clocked In Rate, and Current Clocked In Rate.

8. If you selected Split Shift as the Premium Pay Type, update the following fields as needed:

   • Minimum Hours Between Shifts: Enter the minimum number of hours between each shift.

   • Maximum Hours Between Shifts: Enter the maximum number of hours between each shift.

   • Additional Hours: Enter the number of additional hours that will be paid to an employee if the premium pay conditions are met.

   • Include additional hours in overtime calculations: Select this option to include any additional premium pay hours in the overtime calculations.

   • Pay Rate for Additional Hours: Select the amount for an employee’s hourly rate to be increased for the premium pay.

     Options include, Flat Amount (requires additional configuration), Minimum Wage Rate, Primary Job Rate, Highest Clocked In Rate, and Current Clocked In Rate.
9. Click Save.