Rates for Shift Premiums

Modified on Thu, 4 May, 2023 at 5:14 PM

What is a Shift Premium?

Shift Premiums refer to additional compensation for employees who work outside their normal work hours. Since it can be less desirable to work the graveyard shift or weekend shifts, employers incentivize their workforce with a premium hourly rate.

Rate Tables for Shift Premiums

There are many ways to use Rate Tables for Shift Premiums, each with its own benefits. The most common Shift Premium Rate Table scenarios are:

Assigning Rate Table 1 Tied to Base Comp and then assigning a second Rate Table for the additional Shift Premium amount.
Assigning a Rate Table and adding an extension to Add Extra Rate From, which is tied to a Rate Table for the additional Shift Premium amount.
Assigning a Rate Table and adding an extension to Rate Table Extension to Multiply Rate From, which is tied to a Rate Table for the additional Shift Premium multiplier.

	Shift Premium with Add Extra Rate From Extension This process flow covers how to set up a Rate Extension to add the Shift Premium amount to the assigned Rate Table. Companies using this rate configuration see the full combined rate for Shift Premium hours worked.
	Step 1: Create a Rate Table for the Shift Premium Create the Shift Premium Rate Table that provides the rate amounts for the Shift Premium.
	Step 2: Navigate to the employee's Base Compensation Widget Within the Employee Information screen, navigate down to the Base Compensations Widget. Here the employee is paid $10 per hour.
	Step 3: Open the Personal Rate Table Select the Manage Personal Rate Table hyperlink to open the Personal Rate Table.
	Step 4: Select Extensions Select Extensions from the Jump To links.
	Step 5: Select the Extension Rule Dropdown Select the dropdown icon for the Extension Rule and Choose Add Extra Rate From.
	Step 6: Browse for Rate Table Extension Select the Browse icon to select the Rate Table that holds the additional rates to add. Here the Shift Diff Add $ Rate Table will add $1.50 for Evening Hours.
	Step 7: Save Select the Save button.
	Summary Here is an employee's timesheet that is tied to this example. Notice that the Rate 1 Column has $11.50 per hour. That is the $10 base compensation rate plus the $1.50 additional shift premium amount for the evening shift.

	Shift Premium with Multiply Rate From Extension This process flow covers how to set up a rate extension to multiply the Shift Premium multiplier and the assigned Rate Table. Companies using this rate configuration see the total rate for Shift Premium hours worked.
	Step 1: Create a Rate Table for the Shift Premium Create the Shift Premium Rate Table that provides the rate multipliers for the Shift Premium.
	Step 2: Navigate to the employee's Base Compensation Widget Within the Employee Information screen, navigate down to the Base Compensation Widget. Here the employee is paid $10 per hour.
	Step 3: Open the Personal Rate Table Select the Manage Personal Rate Table hyperlink to open the Personal Rate Table.
	Step 4: Select Extensions Select Extensions from the Jump To links.
	Step 5: Select the Extension Rule dropdown Select the dropdown icon for the Extension Rule and Choose Multiply Rate From.
	Step 6: Browse for Rate Table Extension Select the Browse icon to select the Rate Table that holds the multiplier rates. Here the Shift Diff Add % Rate Table will multiply the rate by 1.10 for evening hours, which equals 10% additional for Evening hours.
	Step 7: Save Select the Save button.
	Summary Here is an employee's timesheet that is tied to this example. Notice that the Rate 1 Column is $11.00 per hour. That is the $10 base compensation rate multiplied by 1.10 from the shift premium Rate Table for the evening shift.