PremiumAmountBaseRate

The PremiumAmountBaseRate actions are typically shift or overtime actions. When you create a PremiumAmountBaseRate 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 PremiumAmountBaseRate type 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 PremiumAmountBaseRate type action for a specific period is: 

Period value = Rate for this period x Action FTE x Phasing factor for this period

If the definition from which the action is created contains Shift Differential = Yes, Rate for this period is calculated using the action amount. If the definition from which the action is created contains Shift Differential = No, Rate for this period is calculated by adding the action amount to the current base rate. This calculation must account for the fact that the current base rate changes over time.

Example 1: PremiumAmountBaseRate calculation for an hourly position

This example shows 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 PremiumAmountBaseRate action for this position:
    Start date End date Amount Hours
    2/15/16 6/15/16 $6 4
  • This table shows the base rates and the corresponding start dates:
    Start date Base rate
    1/1/16 $10
    4/16/16 $12

This table shows the action calculations for February through June, for the Shift Differential = No setting:

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

This table shows the action calculations for February through June, for the Shift Differential = Yes setting:

Month Calculation of rate for this period Rate for this period Period value Result
Feb 14/28 x $6 $3 $3 x 4 x 12 x 1/12 $12
Mar 31/31 x $6 $6 $6 x 4 x 12 x 1/12 $24
Apr 30/30 x $6 $6 $6 x 4 x 12 x 1/12 $24
May 31/31 x $6 $6 $6 x 4 x 12 x 1/12 $24
Jun 15/30 x $6 $3 $3 x 4 x 12 x 1/12 $12

Example 2: PremiumAmountBaseRate calculation for an annual position

This example shows an annual position with these settings:

  • Phasing method: Even

    For each period, the phasing factor is 1/12.

  • This table shows the PremiumAmountBaseRate action details such as start and end dates, amount, and the FTE value:
    Start date End date Amount FTE
    2/15/16 6/15/16 $60,000 1
  • This table shows the base rates and their start dates:
    Start date Base rate
    1/1/16 $100,000
    4/16/16 $120,000

This table shows the action calculations for February through June with the Shift Differential = No setting:

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

This table shows the action calculations for February through June with the Shift Differential = Yes setting:

Month Calculation of rate for this period Rate for this period Period value Result
Feb 14/28 x $60,000 $30,000 $30,000 x 1 x 1/12 $2,500
Mar 31/31 x $60,000 $60,000 $60,000 x 1 x 1/12 $5,000
Apr 30/30 x $60,000 $60,000 $60,000 x 1 x 1/12 $5,000
May 31/31 x $60,000 $60,000 $60,000 x 1 x 1/12 $5,000
Jun 15/30 x $60,000 $30,000 $30,000 x 1 x 1/12 $2,500