PremiumAmountPremiumRate
The PremiumAmountPremiumRate
actions are
typically overtime actions. When creating a PremiumAmountPremiumRate
action, you must specify an amount. The amount is
either an hourly rate or an annual rate, depending on whether the position is hourly or
annual.
You can also specify the number of hours or an FTE value, depending on whether the position is hourly or annual. If you do not specify the number or hours or an FTE value, base hours or base FTE values are used for calculations.
Calculation formulas
For hourly positions, the formula for calculating a
PremiumAmountPremiumRate
action for a specific period is:
Period value = Rate for this period x Action hours x Number of pay periods x Phasing factor for this period
For annual positions, the formula for calculating a
PremiumAmountPremiumRate
action for a specific period is:
Period value = Rate for this period x Action FTE x Phasing factor for this period
When setting up a benefit of this type, you must specify a Based-on benefit
that must be either a PremiumAmountBaseRate
or a PremiumPercentBaseRate
benefit. Rate for this
period
is calculated by adding the action amount to the Based-on benefit
rate. This calculation must account
for the fact that the Based-on benefit
rate
changes over time.
You can see examples of how the based-on benefit rate is calculated.
Example 1: PremiumAmountPremiumRate calculation for an hourly position
This example shows the PremiumAmountPremiumRate
calculation for an hourly position with these
settings:
- Number of pay periods: 12
- Phasing method: Even
For each period, the phasing factor is 1/12.
- This table shows the PremiumAmountPremiumRate action details:
Start date End date Amount Hours 2/15/16 9/15/16 $6 4 - This table shows the
Based-on
rates and their start and end dates:Start date End date Based-on rate 1/1/16 4/15/16 $10 4/16/16 6/15/16 $12 9/1/16 None $14
This table shows the action calculations for February through September:
Month | Calculation of rate for this period | Rate for this period |
Period value |
Result |
---|---|---|---|---|
Feb | 14/28 x ($10 + $6) | $8 | $8 x 4 x 12 x 1/12 | $32 |
Mar | 31/31 x ($10 +$6) | $16 | $16 x 4 x 12 x 1/12 | $64 |
Apr | (15/30 x ($10 + $6)) + (15/30 x ($12 + $6)) | $17 | $17 x 4 x 12 x 1/12 | $68 |
May | 31/31 x ($12 +$6) | $18 | $18 x 4 x 12 x 1/12 | $72 |
Jun | 15/30 x ($12 + $6) | $9 | $9 x 4 x 12 x 1/12 | $36 |
Jul | Action not calculated for July because of the missing value of the based-on benefit in July. | |||
Aug | Action not calculated for August because of the missing value of the based-on benefit in August. | |||
Sep | 15/30 x ($14 + $6) | $10 | $10 x 4 x 12 x 1/12 | $40 |
Example 2: PremiumAmountPremiumRate calculation for an annual position
This example shows salary calculation for an annual position with these settings:
- Phasing method: Even
For each period, the phasing factor is 1/12.
- This table shows the amount, FTE, and the corresponding start and end dates
for the action:
Start date End date Amount FTE 2/15/16 9/15/16 $60,000 1 - This table shows the based-on benefit rates for the indicated date ranges:
Start date End date Based-on rate 1/1/16 4/15/16 $100,000 4/16/16 6/15/16 $120,000 9/1/16 None $140,000
This table shows the action calculation for February through September:
Month | Calculation of rate for this period | Rate for this period | Period value | Result |
---|---|---|---|---|
Feb | 14/28 x ($100,000 + $60,000) | $80,000 | $80,000 x 1 x 1/12 | $6,666.67 |
Mar | 31/31 x ($100,000 +$60,000) | $160,000 | $160,000 x 1 x 1/12 | $13,333.33 |
Apr |
(15/30 x ($100,000 + $60,000)) + (15/30 x ($120,000 + $60,000)) |
$170,000 | $170,000 x 1 x 1/12 | $14,166.67 |
May | 31/31 x ($120,000 +$60,000) | $180,000 | $180,000 x 1 x 1/12 | $15,000.00 |
Jun | 15/30 x ($120,000 + $60,000) | $90,000 | $90,000 x 1 x 1/12 | $7,500.00 |
Jul | Action not calculated for July because of gap in the based-on benefit. | |||
Aug | Action not calculated for August because of gap in the based-on benefit. | |||
Sep | 15/30 x ($140,000 + $60,000) | $100,000 | $100,000 x 1 x 1/12 | $8,333.33 |