PREMIUM_CALC_RULE
Premium Calc Rule
Premium Calc rule is the rule that will be used to calculate the premium. There are a number of formulas provided. Below is a table that outlines the calc rule from the LOV, the formula it represents, whether a pro-ration is applicable, and an example of each rule. An explanation of the use of FTE Pro-ration follows the table.

If the premium calculation rule uses a user variable, that user variable must be on the Time Pay component in order for this premium calculation to work

Premium Calc Rule:Formula / NotesFTE Pro?Example:
01Premium RatePremium Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		YesPremium Rate=6.00
Frequency = (not applicable)
Result = $6.00 for each transaction with this premium attached
02Prem Rt Per PeriodPremium Rate for the pay period frequency
Flat amount created during UPAUDT		YesPremium Rate=6.00
Pay Frequency=Monthly
Result = $6.00 given once each pay.
03Prc x Wage RtPremium Rate as a Percentage X Employee’s Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		YesPremium Rate = 100.00
Rate Basis = WK (from ISPM form)
EE’s Wage Rate = 50,000/year
Calc = 100 / 100 * $50,000 / 52 wk
Result = $961.54 for each transaction with this premium attached (100% of 1 weeks’ pay)
04Prem Rt x PC UVarPremium Rate X PC User Variable Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		YesPremium Rate = 10.00
Rate Basis = (not applicable)
User Variable Rate = 1.5
Calc = 10.00 * 1.5
Result = $15.00 the rate basis of the premium and the pay component that originated the transaction (if there is one), are not applicable
05Prc x Wg Rt x UVarPremium Rate as a Percentage X Employee’s Rate X PC User Variable Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		YesPremium Rate = 15.00
Rate Basis = WK (from ISPM form)
EE’s Wage Rate = 10.00/hr
EE’s Hours/Week = 40 (from Assignment)
User Variable Rate = 2
Calc = 15 / 100 * $400 * 2
Result = $120.00 for each transaction with this premium attached ($400 is the weekly rate)
06Prem x EVPremium Rate X Entered Value
Premium Type attached to IPPC
Created when Pay Line is created/saved		N/APremium Rate = 10.00
Rate Basis = DY (from ISPM form)
EE’s Hours/Day = 8 (from Assignment)
Entered Value = 4
Time PC basis = HR (from transaction)
Calc = 10.00 / 8 * 4
Result = $5.00 for this transaction
07Prem x EV x Wg RtPremium Rate X Entered Value X Employee’s Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		N/APremium Rate = 0.25
Rate Basis = HR (from ISPM form)
Entered Value = 8
Time PC basis = HR (from transaction)
EE’s Wage Rate = 10.00/hr
Calc = 0.25 * 8 * 10
Result = $20.00 for this transaction
08Prem x EV x UVarPremium Rate X Entered Value X PC User Variable Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		N/APremium Rate = 4.00
Rate basis = DY (from ISPM form)
Entered Value = 6
Time PC basis = HR (from transaction)
EE’s Hours/Day = 7.5
User Variable Rate = 1.5
Calc = 4 * (6 / 7.5) x 1.5
Result =$4.80 based on the fact that a day is 7.5 hours, so the time was 0.8 days
09Prem x EV x Wg x UVarPremium Rate X Entered Value X Employee’s Rate X PC User Variable Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		N/APremium Rate = 5.00
Rate basis = HR (from ISPM form)
EE’s Wage Rate = 15.00/hr
Entered Value = 9
Time PC basis = HR (from transaction)
User Variable Rate = 0.005
Calc = 5 * 9 * 15 * 0.005
Result = $3.38
10Contract Limit PremOnly applied to the Contract Limit on IEAS when an employee is in a ‘Contract’ type GroupN/APremium Rate = 1500.00
Rate basis = CT (from ISPM form)
This amount is included in the Contract Limit.
11Cell Points N/A – custom calc rule
12UPTG Period $$$Premium Rate the frequency indicated
Flat amount created during UPTG
This rule is only applicable when generating dollars and not if you’re generating hours.		YesPremium Rate = 6.00
Frequency = WK (from ISPM)
Pay Frequency = Biweekly
Result = $12.00 for this pay period (6.00 per week).
13UPTG Period Cell Pts N/A – custom calc rule
14Increment TimeIncrement Time is used in Time Scheduling -determined by the Clock In and Out times and the Time Type. Used on premiums attached to the Pay Line, and – not to the Position, Job or Assignment. This restriction is imposed since the ‘Override Rate’ is the key value in the formula and it would always be entered for premiums of this type.
15Pay Period PremiumFlat dollar amount that is given once per pay period. If there are multiple pays in a pay period, this will be give only once.
16Flat Amount Per DayFlat dollar amount that is given once for each day worked. If there are multiple transactions on the same day, it will be given only once. FTE is not relevant here.
21Increase Wage by Flat AmountPremium Rate as a Flat Amount + Employee’s Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		YesPremium Rate = 5.00
Rate Basis = HR (from ISPM form)
EE’s Wage Rate on payline = 25.00/Hour
Calc = 5.00 + 25.00
Result = $30.00 per hour for each transaction with this premium attached
IPPC line details rate source must be set up with;
'Prime + Premiums'
'Assign + Premiums'
'Job/Posn + Premiums'
'Job + Premiums'
23Increase Wage by PercentagePremium Rate as a Percentage + Employee’s Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved		YesPremium Rate = 10.00
Rate Basis = HR (from ISPM form)
EE’s Wage Rate on payline = 50.00/Hour
Calc = (10/100*50.00) + 50.00
Result = $55.00 per hour for each transaction with this premium attached
IPPC line details rate source must be set up with;
'Prime + Premiums'
'Assign + Premiums'
'Job/Posn + Premiums'
'Job + Premiums'
24FF PPL RRM Prem x EV x UVarFollow Pay Line Salary Rate method Premium Rate X Entered Value X PC User Variable Rate
Premium Type attached to IPPC
Created when Pay Line is created/saved
The premium follows the calculation of the Pay Line rate, i.e. if Pay Line is 'variable rate' then the premium is using the same 'variable rate' logic to calculate the premium amount		N/APremium Rate = 2100
Rate basis = YR (from ISPM form)
**IPPH - Variable Rate
Pay Line PC has Type=Computed Value and Salary Method=Variable Rate(Hours)
Pay Period has 11 working days
Entered Value = 8
Time PC basis = HR (from transaction)
EE’s Hours/Day = 8
User Variable Rate = 1
Calc = 2100 / 24 / 88 * 8
Result = $7.954545 =$7.95
**IPPH - Annualized Rate
Pay Line PC has Type=Computed Value and Salary Method=Annualized
Entered Value = 8
Time PC basis = HR (from transaction)
EE’s Hours/Day = 8
User Variable Rate = 1
Calc = 2100 / 52 / 40 * 8
Result = $8.076923 = $8.08
The examples show that where there is a difference between the rate basis of the premium and the rate basis of the employee or the time transaction, a conversion of the rate will occur using the employee’s hours per day, or the rate basis of the time transaction, as applicable.

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