Premium Amount

This action type supports overtime, shift, or other costs expressed as an amount in addition to the current pay rate.

When this action is applied, an amount must be specified. Optionally, hours or FTE may be specified. If hours or FTE is not specified, then Base Hours or FTE are used for the action hours or FTE.

This action type can be defined to calculate only shift differential. If the shift differential is calculated, then the base salary and shift can be reported and mapped to the financial tables separately. If hours or FTE are specified for a shift differential only action, the hours are not included in the total hours or FTE calculation.

Example

Assuming an even monthly spread method (Period's Spread Factor/Total Spread Factors) = 1/12

Salary = $12,000
Premium Amount = $2,400
Action FTE = 1
Hourly Rate = $10
Hourly Premium Rate Amount = $2
Action Hours = 40
Pay Periods = 52

This is the calculation rule for a salaried position:

Premium Rate = Annual Base + Annual Premium Amount

$12,000 + $2,400 = $14,400

Premium Rate * Action FTE * (Period's Spread Factor / Total Spread Factors)

$14,400 * 1 * (1/12) = $1,200

This is the calculation rule for an hourly position:

Premium Rate = Hourly Base Rate + Hourly Premium Amount

$10 + $2 = $12

Premium Rate * Action Hours * Pay Periods* (Period's Spread Factor/Total Spread Factors)

$12 * 40 * 52 * (1/12) = $2,080

If the action calculates only shift differential, this is the calculation rule for a salaried position:

Premium Rate = Annual Premium Amount

$2,400

Premium Rate* FTE * (Period's Spread Factor / Total Spread Factors)

$2,400 * 1 * (1/12) = $200

If the action calculates only shift differential, this is the calculation rule for an hourly position:

Premium Rate = Hourly Premium Amount

$2

Premium Rate* Action Hours * Pay Periods* (Period's Spread Factor/Total Spread Factors)

$2 * 40 * 52 * (1/12) = $346.667