Premiums

There are many different ways of paying out premiums and defining who is eligible for which premiums and at which rates. For now, Umana provides tools, but not a turnkey solution.

1. When do we pay premiums?

Here are a few options:

1. Premiums are manually entered in the time sheet. This may be important if the premiums represent overtime or something else that the system cannot determine automatically.
1. Premiums are added by the time sheet based on rules. This is also a common situation. One of our customers has an employee who, when she fills in for her supervisor, is paid a premium of 50% of the difference between her normal rate and her supervisor's rate for the number of hours that were worked.
1. Premiums are based on the person's status (grade, experience, etc.), and are paid once a week, month or other period. Often a customer will have a combination of the three options. In cases a. and b., the premiums should be created by the time sheet program. In case c., the premiums could be paid when the salaries are generated. This involves programming the ZSALAR module.

2. How do we decide who is entitled to which premiums?

The program that pays the premiums needs to determine which premiums apply. Usually the premiums are associated with the person, job, schedule, etc. These are standard places where premiums are often found. There are therefore fields for premiums in the following:

SCHED — schedules
DAYTYPE — shifts
JOB — list of defined jobs
JOBHIST — employee status The premium table is called TBL: PRIME.

3. What is the amount of the premium?

Usually the premium amount is calculated by a formula. It could be a fixed amount or an amount calculated on an hourly basis. If it is an hourly amount. . .

It could be a percentage of the basic hourly rate (e.g. the premium is 20% of the hourly rate).
It could be a flat rate—the premium for a Saturday could be $0.40/hour. If it's a fixed amount, regardless of the number of hours worked, just put hours = 1.
A meal or other lump sum could be treated as a premium. For example, if the number of hours worked exceeds 10, the employee is entitled to a meal paid for by the company. The quantity (number of hours) equals 1 and the rate is the amount allocated for 1 meal. In the premium table, the TBLC2 column contains a kind of formula. See the ADJAMT.PRG program, which accepts a basic amount and the formula, and calculates an amount for the premium.

ADJAMT accepts formulas such as the following:

40.00 — A fixed amount
20% — A percentage
+.02 — Basic amount plus $0.02
-1.5 — Basic amount minus 1.50%
~MaFonction() — The tilde indicates that what follows is an expression to be evaluated
>PREMIUM:X — A reference to the dated expression PREMIUM:X