Creating a Threshold Premium

The setup window is divided into two sections.

Pay Code

1. Enter a Name for this code, as you would like it to appear throughout the system.
2. Enter a 3-character Abbreviation for the code. This abbreviation will be displayed with hours totals in areas like Time Cards and reporting.
3. Enter the Export Code to be used when exporting your hours to an external payroll software. Some payroll programs require that this code be set up in a specific format. Ensure that you are familiar with you payroll program's specifications.
4. The Type field denotes that you are creating an "Premium" pay code, and should be left as is.

Premium Pay Code

5. Select "Threshhold" from the Application Type drop-down menu.
6. Enable the Display on Time Card option if you would like the abbreviation for this Premium to display on the Time Card when attached to hours. This can help avoid confusion when multiple codes apply to the same hours record. If left unselected, the Premium will still be processed, exported, and included in reports, but will not display on employee Time Cards.
7. Use the Effective Dates settings if you would like this Premium to be active only for a certain range of dates. Click on the icon to select the dates from a calendar
   Note: This setting is optional. Leave the date fields blank when you do not want to restrict the Premium by date.
8. The Operation Precedence is the order in which the system will apply the Premium Pay Code when more than one policy applies to an employee's hours. A setting of "1" is the highest precedence.

9. The Application Rule section contains multiple settings.

• Select the Period. This allows you to specify that the Premium is to be applied by a period of "Daily," "Overtime Week" or "Pay Period."
• In the Hours field, input the number of threshold hours that the employee must exceed before the Premium activates.

• The Apply Premium to Period option allows you to specify if the Premium is to apply to the Premium hours, or to the entire Period configured above. This defines if the Premium is applied to all hours in the Period, or only the hours that exceed the specified Threshold.

10. The Concurrent Pay Codes field allows you to select which additional Premium Pay Codes in the system are allowed to apply to the same hours record as this Premium. All Premiums are listed in the Included box. To define that a Premium is not allowed to apply when this code is in use, highlight the code in the Included box, and click on the icon. The selected Premium is moved to the Excluded box.

11. The Concurrent Required Pay Codes field contains two options. Select "Require All Included" to define that this Premium will only apply when all codes in the Included box are attached to the hours record. Select "Invalid with Any Excluded" to denote that if an hours record contains any Base Pay Code type that is excluded, no Base Pay Code or combination of codes will be applied where the code may be another premium type.

12. The Pay Order option allows you to specify the pay order of this code in a scenario where multiple Premiums apply to the same hours record. This setting is important, as you can end up with very different results for employee pay calculation depending on what is specified here. A setting of "1" is the highest order of pay.

13. The Pay Type section allows you to select how you would like Premium Pay for this code to be calculated.

• Pay Multiplied by Factor: The employee's regular rate of pay is multiplied by a factor (would be used to award an employee with time-and-a-half, etc.).

• Pay Plus Premium: A premium rate is added to the employee's regular rate of pay (would be used to award an employee with an additional 50 cents an hour, etc.).

• Flat Rate: The employee's regular rate of pay is ignored, and the specified hourly pay rate is awarded (would be used to award an employee with a flat $15.00 an hour, etc.).

• Flat Amount: All hours information is ignored, and the specified amount is awarded.

• Pay Rate Formula: This option is used in place of a factor, premium or flat rate and allows you to create a formula with which the Premium Pay rate will be calculated.
  Note: This type can be helpful when setting up a Premium including a "Quantity Completed" in the Job Tracking module of the program.

14. Based on the Pay Type setting above, enter the desired Premium Policy Amount ( as in "1.5" for an additional time-and-a-half, ".50" for an extra 50 cents an hour, etc.).

15. Click on the [SAVE] icon to add the Premium Pay Code to the system.