- 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 / Notes | FTE Pro? | Example: | |
|---|---|---|---|---|
| 01 | Premium Rate | Premium Rate Premium Type attached to IPPC Created when Pay Line is created/saved | Yes | Premium Rate=6.00 Frequency = (not applicable) Result = $6.00 for each transaction with this premium attached |
| 02 | Prem Rt Per Period | Premium Rate for the pay period frequency Flat amount created during UPAUDT | Yes | Premium Rate=6.00 Pay Frequency=Monthly Result = $6.00 given once each pay. |
| 03 | Prc x Wage Rt | Premium Rate as a Percentage X Employee’s Rate Premium Type attached to IPPC Created when Pay Line is created/saved | Yes | Premium 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) |
| 04 | Prem Rt x PC UVar | Premium Rate X PC User Variable Rate Premium Type attached to IPPCCreated when Pay Line is created/saved | Yes | Premium 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 |
| 05 | Prc x Wg Rt x UVar | Premium 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 | Yes | Premium 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) |
| 06 | Prem x EV | Premium Rate X Entered Value Premium Type attached to IPPC Created when Pay Line is created/saved | N/A | Premium 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 |
| 07 | Prem x EV x Wg Rt | Premium Rate X Entered Value X Employee’s Rate Premium Type attached to IPPC Created when Pay Line is created/saved | N/A | Premium 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 |
| 08 | Prem x EV x UVar | Premium Rate X Entered Value X PC User Variable Rate Premium Type attached to IPPC Created when Pay Line is created/saved | N/A | Premium 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 |
| 09 | Prem x EV x Wg x UVar | Premium 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/A | Premium 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 |
| 10 | Contract Limit Prem | Only applied to the Contract Limit on IEAS when an employee is in a ‘Contract’ type Group | N/A | Premium Rate = 1500.00 Rate basis = CT (from ISPM form) This amount is included in the Contract Limit. |
| 11 | Cell Points | N/A – custom calc rule | ||
| 12 | UPTG 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. | Yes | Premium Rate = 6.00 Frequency = WK (from ISPM) Pay Frequency = Biweekly Result = $12.00 for this pay period (6.00 per week). |
| 13 | UPTG Period Cell Pts | N/A – custom calc rule | ||
| 14 | Increment Time | Increment Time is used in ITIO -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. | |
| 15 | Pay Period Premium | Flat dollar amount that is given once per pay period. If there are multiple pays in a pay period, this will be give only once. | ||
| 16 | Flat Amount Per Day | Flat 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. |
- 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.
