Learn how to configure and apply Earnings Premiums in Back Office Suite and monitor and validate them in Back Office Suite and your HCM.
Overview
Earnings Premiums are a type of pay that employees can receive on top of their regular earnings based on certain conditions or criteria. For example, an employee may receive a health and welfare credit, a prevailing wage, or a uniform allowance as an Earnings Premium.
Earnings Premiums can be set up and managed in Back Office Suite and integrated with your HCM. You can create and apply Earnings Premiums to employees and positions and export them to your HCM for payroll processing.
Before you start
Here are some things you must do before you start:
• Contact us to enable the connection with your HCM.
• Contact us to enable the auditing feature on your portal.
Configuration
To configure Earnings Premiums, adjust three settings.
- Enable both the Earnings Premium and Premium Pay/Bill toggles by going to Settings > General Configurations > Features
- Assign the necessary permissions by going to Settings > General Configurations > Roles & Security
- Choose the admin role that will need the permission
- Open the Audit History folder
- Select View Settings Audit History. This permission will allow monitoring of the creation, deletion, or editing of Earnings Premiums.
- Adjust your Payroll & Overtime default settings by going to Settings > Backoffice Configurations > Backoffice Default
- Select Show premiums separately from regular hours in payroll. This option lets you view Earnings Premium under Payroll when running a pay run for your HCM.
Create an Earnings Premium
To create an Earnings Premium, go to
Settings > Backoffice Configurations > Premiums > +New Premium
Complete the following information:
- Type: Choose Pay hourly on top of earning
- Code: The code for the premium that will be displayed both in Back Office Suite and your HCM.
- Name: The name of the Earnings Premium, such as Health and Welfare Credit or Uniform Allowance.
- Premium Value: This is the amount that the employee will receive as an Earnings Premium for each hour worked
- Hours base: This drop-down menu lets you choose the pay rate (Employee, Position, Site, or Multi) to which you’d like to add the premium.
- Add to Base Rate: This checkbox indicates whether the Earnings Premium rate should be added to the base pay rate or used as the actual rate of the Earnings Premium. If you check this box, you can set a minimum base and hours for the Earnings Premium. You can select a maximum base and hours for the Earnings Premium if left unchecked.
- Max Hours: This numeric field allows you to enter the maximum number of hours to which the Earnings Premium should apply. For example, if you enter 40 as the maximum hours, the Earnings Premium will only apply to the first 40 hours worked by the employee in a pay period.
- Use Premium Code on Payroll exports: Checking this box will display Earnings Premium in your payroll exports.
Apply an Earnings Premium to an employee or a position
Once you have created an Earnings Premium, you can apply it to an employee or a position in Back Office Suite. To do this, you can use the Pay Premiums drop-down menu in the following sections:
- Employees > Employee Profile > HR Profile > Payroll & Scheduling Settings: You can apply the Earnings Premium to an individual employee. Using the Multi/Client, Sites, and Positions drop-down menus, you can select the multi-site, site, and position for which the Earnings Premium should apply. For example, if you want the Earnings Premium to apply only when the employee works at a specific site and position, you can select those options here.
- Sites (Client) > +Create a position or select Edit: You can apply the Earnings Premium to a position at a site or multi-site. Using the Employee drop-down menu, you can also choose the employee to which the Earnings Premium should apply. For example, if you want the Earnings Premium to apply only to a specific employee who works at a particular position, you can select that option here.
Monitor and validate your Earnings Premiums
After applying the Earnings Premium to an employee, position, site, or multi-site, you can monitor and validate it in both Back Office Suite and your HCM. To do this, you can use the following sections:
Monitor and validate in Back Office Suite.
- Settings > Backoffice Configurations: Premiums > History: Here, you can track and audit the Earnings Premiums you created, edited, or archived in Back Office Suite. You can see the date, time, user, and action for each Earnings Premium.
- Employees > Employee Profile > History: In Back Office Suite, you can track and audit the Earnings Premiums you applied to an employee. You can see the date, time, user, and action for each Earnings Premium.
- Sites (Client) > Positions > Select History: In Back Office Suite, you can track and audit the Earnings Premiums you have applied to at a site or multi-site. You can see the date, time, user, and action for each Earnings Premium.
- Dashboard > HR &Payroll > Prepare Payrun > Details/ Prepare > Pre-Process Payrun > Export: Here, you can export the employee hours and Earnings Premiums to an Excel file and review them before sending them to your HCM. You can see the employee name, ID, pay code, hours, and rate for each Earnings Premium.
- Dashboard > HR &Payroll > Prepare Payrun > Details/ Prepare > Pre-Process Payrun: Select either the Raw Items or the Summary tab. You can approve and lock the pay run and send the employee hours and Earnings Premiums to your HCM. You can see the employee name, ID, pay code, hours, and amount for each Earnings Premium.
Monitor and validate in your HCM
- Payroll > Search the associated Payrun > Begin > Import Pay Partner Time Integration > Import > Next: Here, you can import the employee hours and Earnings Premiums from Back Office Suite to HCM and review them before processing the payroll. You can see the employee name, ID, pay code, hours, and amount for each Earnings Premium.
- Payroll > Paygrid: Here, you can see the final payroll results, including the employee hours and Earnings Premiums. You can also see the employee name, ID, pay code, hours, and amount for each Earnings Premium.
Conclusion
Earnings premiums are a way to reward your employees for working under certain conditions or criteria and complying with government regulations. Using Back Office Suite and your HCM, you can easily set up, manage, and process Earnings Premiums for your employees, positions, sites, or multi-sites. You can also monitor and validate the Earnings Premiums in both systems and ensure they are calculated and paid correctly.