The Premium Reduction Rule is used in cases where employees are paid both by premiums and by their worked hours. For example, employees are paid using premiums for their billable hours, and are also paid for their regular worked time based on their clock entries at the clock, but should receive only the greater amount of either their billable hours or worked hours. At the end of the specified period, this rule sums the amount from premiums and the amount from work details, and claws back the lesser of these two amounts. Optionally, the rule can also be configured so that it adjusts the premiums within the current calculation period, rather than clawing back.
Note: The Premium Reduction Rule is designed to run with qualifiers that limit the rule to run only once for a defined period. For example, if the rule is designed to look back one week, you would attach a qualifier to the rule to ensure that it runs only on the last day of the week.
| Setting | Description |
|---|---|
| Number of days to look back | Enter the number of days the rule looks back. For example, enter 7 to configure the rule so that it examines a week. |
| Look back to start of month | Select this checkbox to configure the rule so that it looks back to the start of the current month, rather than looking back a specific number of days. |
| Pay code for reduction/prorated premium Pay category for reduction/prorated premium |
The pay code and pay category Dayforce uses when it claws back the lesser amount. |
| Pay codes eligible for worked time Pay codes ineligible for worked time |
The pay codes that are eligible and ineligible to mark worked time. |
| Pay categories eligible for worked time Pay categories ineligible for worked time |
The pay categories that are eligible and ineligible to mark worked time. |
| Pay codes eligible for premium Pay codes ineligible for premium |
The pay codes that are eligible and ineligible to contribute towards any premiums that are calculated by the rule. |
| Pay categories eligible for premium Pay categories ineligible for premium |
The pay categories that are eligible and ineligible to contribute towards any premiums that are calculated by the rule. |
| Prorate final amount by worked hours in period |
With this checkbox selected, Dayforce adjusts premiums in the current calculation period rather than clawing the lesser amount back. Note: When this checkbox is selected, ensure that the number of days the rule looks back represents a single calculation period. For example, if the calculation period is weekly, ensure that 7 is entered in the Number of days to look back field. |
| Include premiums as regular work |
With this checkbox selected, Dayforce includes the amount from premiums when calculating the amount associated with worked time. Note: Select this checkbox only if the Pay out adjustments as reduced premiums checkbox is also selected. |
| Pay out adjustments as reduced premiums |
Select this checkbox in cases where employees receive hours-based pay adjustments rather than premiums. With this checkbox selected, the rule compares the amount the employee would be paid for these pay adjustments at their base rate with the amount that they were paid in their work details. If the amount calculated for hours-based pay adjustments is greater than the amount the employee received in their work details, the rule awards a premium for the difference between the two. For example, an employee receives $500 in their work details, and has a base rate of $15 per hour. If the employee had 40 hours of pay adjustments in their timesheet, Dayforce would award the employee a $100 premium (that is, the difference between the $500 they received and the $600 they would have received (40 hours * $15 per hour) had they been paid based solely on the hours-based pay adjustments). |
| Eligible departments Ineligible departments |
The departments that are eligible or ineligible when Dayforce calculates the amounts for worked time and premiums. |
| Eligible jobs Ineligible jobs |
The jobs that are eligible or ineligible when Dayforce calculates the amounts for worked time and premiums. |