Employee premiums are additional compensation that is paid to an employee on top of their existing earnings for working particular positions. Position premiums are similar to [shift premiums], the most important difference between the two kinds of premiums is that position premiums will apply while working a position, not a shift.
Premiums can be as simple as a flat-rate addition on top of time worked
(e.g. an extra $5.00/hour),Or as complex as a top-up premium percentage of the earnings
(e.g. when an employee works 5 hours less than their full shift they can earn a top-up premium at 50% of their normal rate for the remaining 5 hours).
Premiums can be setup to pay as a flat-rate, or as a percentage of whatever earnings the premium was earned on.
When a Premium Rule is attached to a position in the Employee Profile it is important that the corresponding Earning Code for that premium is added to the employee profile as well
The actual rate for the premium earnings is set on this Earning Code on the Employee Profile and will apply to all premium units generated by the Premium Rule.
If the premium rate is setup as a percentage of earnings the premium rate will be calculated automatically instead.
| 1 | The Premium Rule is attached to the position on the Employee Profile. |
| 2 | The Earning Code defined on the Premium Rule must be added to the Employee Profile. |
Manager Premium Rule
The premium that will be setup for the Manager position is a basic example of what premiums can be used for. The premium rate will be a flat-rate on top of the regular earnings for that position, without any restrictions or thresholds applied.
Open Time & Attendance > Installation & Maintenance > Premium Rules.
Create a new Premium Rule for the Manager position premium by pressing Insert.
The steps to setup the Premium Rule will be covered in the following sections.
Setup Premium Rule to pay a flat-rate premium
The Manager Premium Rule will be setup using the default values for most of the fields.
Important: The premium rate will come from the Earn Code that is selected. The flat-rate premium rate will be set on the Employee Profile in a future step using this Earning Code. See: creating an earning code. |
Enter the Premium Rule Id, and a Description for the Premium Rule.
Select the Earning Code for the premium earnings from the Earn Code drop-down.
If the premium earning should follow the G/L accounts for the earnings that the premium was earned on, enable Override Benefit Group now.
Open the Eligible Earn Codes tab and enable the earning codes that the premium should be earned on. (Regular Earnings is generally the appropriate option).
Save the new Premium Rule by pressing OK now.
| 1 | The Premium Rule Id and a description are entered for the Manager premium. |
| 2 | These settings have been left at default; as they are setup the premium will apply on any day of the week, for all of the time worked on any of the Eligible Earn Codes. |
| 3 | A separate Earn Code of paying the Manager Premium has been selected here. The premium rate is set on this earning code. |
| 4 | The Override Benefit Group option is enabled so that the premium earnings follow the G/L settings of the eligible earnings |
The Premium Rule is now setup and can be added to a position from the Employee Profile, or to a shift in Time & Attendance.
Position Premium
Now that a Premium Rule has been setup for the Manager position the rule should be added to the position. Premium Rules are attached to positions per employee from the Employee Profile.
Open the Employee Profile of the employee
Let’s now open the Employee Profile of the employee that will earn the premium when working under a Manager position.
Open the Employee Profile of the employee you want to add a shift Premium to:
Open Canadian Payroll > Employee Profile > Employee Profile.
From the Employee drop-down select the employee.
Open the Positions tab of the Employee Profile.
Add premium to position
From the Positions tab the available positions for the current employee are listed. Premiums are added from the position settings. Let’s open the Manager position now and add the premium to it:
Open the position to add an additional premium to.
Shortcut:You can open the position by double-clicking the position in the list, or select the position and press Modify.Open the Premiums tab, below the position settings.
Add a new premium to the position:
Press Insert
Select the Premium Rule of the premium to add.
Press OK to add the premium to the position.
| 1 | Open the Premiums tab here. |
| 2 | Add a new Premium Rule to the position by pressing Insert here. |
| 3 | Select the Premium Rule to add. |
| 4 | Press OK to add the rule to the current position. |
Save the position premium to the Employee Profile
Save the changes to the Employee Profile by pressing OK now.
At this point the premium will be earned whenever the employee works the Manager position, however the flat-rate amount for the premium must still be setup, which will be covered in the next section.
Premium Earning Code
At the beginning of this guide the premium was meant to be a flat-rate $5.00/hour. The rate for the premium is not controlled by the Premium Rule itself. Instead, the Earning Code that was specified on the Premium Rule controls the premium rate. We’ll need to add that Earning Code to the employee profile and set the premium rate on the Master rate of the Employee Profile.
Add Earning Code for premium
Open the Earnings > Earning Codes tab of the Employee Profile.
Add the premium Earning Code by pressing Insert.
After pressing Insert the Earning Code setup form will open where Earning Code can be selected, and a rate applied. This will be covered next.
Set the premium rate on the Earning Code
Select the premium Earning Code.
Enter 5.00 per Hour for the Rate.
Add the Earning Code by pressing OK.
Summary
A Premium Rule has been created and setup to earn a premium for each hour of regular earnings worked.
The Premium Rule has been attached to the position on the Employee Profile.
The Earning Code for the premium Earnings has been added to the Employee Profile and a flat-rate configured for the premium rate.
At this point whenever the employee works using the Manager position they will earn an additional $5.00/hour for every hour worked.
