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Payroll Preprocessing Administration Premium Pay Premium Pay Premium Pay Types Premium Pay is additional pay that is administered at a higher rate. Premium Pay can be considered many things, from overnight work to holiday pay. For example, an employee who agrees to work Easter Sunday or Thanksgiving Day may earn pay at a rate that is higher than his or her normal pay rate. Premium Pay Types are used to define the format by which pay will be issued. There are three classifications of Premium Pay: 1. Amount 2. Hourly 3. Split Shift AMOUNT An Amount is a flat hourly rate amount or percentage of minimum wage, primary job, highest clocked in rate, or current clocked in rate may be awarded to the employee. If you select this type, MICROS recommends entering a Start and End Time. Also, you will need to specify the method by which hourly rates are increased. You may select a flat amount or a percentage increase. For example, an employee who is working on December 25 may receive an extra $50 in compensation for Holiday Work. This would be a Flat Amount. If you select Flat Amount, you will need to enter the amount by which to pay the employee. If you select Percentage, you will first need to identify the percentage of increase/decrease and then specify the basis of the increase/decrease, i.e., what existing rate is being increased/decreased by the percentage. HOURS Selecting the Hours type denotes that employees will be paid for the hours they worked and at a flat hourly rate amount or percentage of an existing wage. If you select this option, you will be required to specify how many additional hours will be paid at a premium rate. Additionally, you will be required to define how the premium pay will be administered - a flat amount or a percentage of an existing pay rate. SPLIT SHIFT State law may require that an employee be paid for an extra hour of work if the employee is scheduled to work two shifts in a day that are more than 1 hour apart. This extra hour is paid to the employee, but may not be included in overtime hours. If you select Split Shift, MICROS recommends entering the minimum and maximum number of hours between shifts that must pass before premium pay is eligible. For example, some states may have laws that dictate that if an employee is schedule to work a split shift, and the shifts are more than one hour apart, the employee must be compensated for that hour. Payroll Preprocessing Administration Page 112 myLabor Feature Reference Manual
