Earnings are keyed into batches or accepted from Job Cost. The Rate Code defines the rate used to convert units into the amount to be paid. Three types of units can be entered on each earnings transaction. They are generally referred to as Regular, Overtime 1, and Overtime 2. The amount shown on the Rate Code is the base for the Regular Rate. Overtime Rate 1 is 1.5 times the Regular Rate, and Overtime 2 is 2.0 times the Regular Rate. Each of these rates can be modified by applying a premium to it.
Premiums are increases made to a rate on earnings transactions. Premiums are applied to each of the three rates independently. The way the premium is applied is controlled by codes on the Rate Code definition. Some premium calculations use values from other sources as well. Premium Codes on the Rate Code also say how the premium is applied. The following premium codes are defined:
The Shift is a way of classifying earnings. The Shift Code can be used to assign a premium to each of the rates on a transaction. The valid Shift codes are defined in the general payroll table SH. Each Shift code can have a premium amount assigned to it. If the Premium code is S, this amount is added to the rate after the multiple is applied. For example:
If the Premium Code is R this amount is added before the multiple is applied. For example: