Premiums are used to track and pay extra time and earnings that are not strictly wages.  

An example is to use a premium to pay an extra 50 cents per hour for employees who work an overnight shift. In this case, the program uses a calculation formula (rule):
Premium Rate (in this case .50) X Time (hours worked) X Wage Rate (usually the employee’s assignment rate, but may have been overridden) X User Variable (1.5, 2, etc. for overtime).

You will be able to control premiums by using premium ‘types’.  For example, these types will prevent an employee from being paid for both a ‘Day’ and an ‘Afternoon’ shift premium at the same time.  Premium types are assigned to [pay components|PAY COMPONENTS] to control the wages to which they are to be applied.

For example, shift premiums are applied to REG and OT Time but not VAC or SICK.

Premiums will be associated to jobs, position, assignments or pay lines.  If the same premium type is indicated on more than one of these forms, the order of precedent applies.  The precedent order is: 

*pay line overrides assignment, position and job 
*assignment overrides position and job
*position overrides job

!! Sample set up for premium calculation ‘Increase Wage by Flat Amount’
!Business Requirement
*An employee has a regular hourly rate of $36.00. 
*The employee is bilingual and should receive $1.00 per hour addition to the regular rate.
*On IPPH Pay Line, the wage rate used to calculate their regular earnings should be $37.00 / hour.
!Premium Set Up
*The Premium Type must be X-INCL WAGE
*The Premium Calc Rule must be ‘Increase Wage by Flat Amount’
*No PC’s are required. 
[Pic1.png]
!Pay Component Set up
In this example PC 125 and 1125 were created.

Rate Source:  ‘x + Premiums’, in this example used the Prime Wage Rate + Premiums

[Pic2.png]

On the applicable ‘Hours’ PCs add the Premium Type. 

[Pic3.png]

Test by adding a pay line on IPPH – pay 32.
The correct rate of $37 ($36 + $1).  

[Pic4.png]


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![Notes|Edit:Internal.PREMIUMS] 	
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