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