Rate SetterIntroduction

Rate Setter is designed to help firms calculate charge-out ratesfor every employee within the firm, taking into account

fixed business costs and other important factors.

It also helps to review charge-out rates and to calculateearnings packages for employed or self employed advisers.

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Rate Setter Business costs

Start by listing your business expenses excluding any salary costs.This helps to ensure that you allow for all the costs of the business. If you already know the total of these costs you can skip this section.

Rate Setter Starting to calculate effective charge out rates

In the 3 yellow boxes above, add the current employer NI rate, the starting threshold and

your business costs from the previous screen

Rate SetterAdding employee information

Add the information for all staff but initially leavethe charge out rate blank. A proportion of thebusiness costs have been assigned to each

employee based on their earnings and minimumcharge rates calculated for each.

With the help of these calculations, add a charge-out rate for each employee

Rate SetterApplying an hourly charge out rate

By adding the charging rates the anticipatedincome for each employee is calculated in

the final column and the Profit / Lossat the top of the screen has been updated.

Rate SetterAmending charge out rates

You can now amend any of the yellow fields to seehow this will impact on profitability. If the

director increases his drawings to £75,000 he willneed to increase the amount of time he spends with

clients or increase his charge out rate or both.

Rate SetterAmending charge out rates

By increasing the percentage of his client time by3% to 38% the business just about returns to profit.

Rate Setter Amending charge out rates

but he will also need to increase his hourly rate if he wants to retain the profitability of the business.

Rate SetterRecruitment and Reviews

This section deals with recruitment and existing employee salary reviews.Simply complete the yellow fields.

Rate SetterAdding up the costs and setting commission targets

Add the additionalcosts associatedwith employing

this person

Rate SetterBusiness profitability and employee earnings estimates

Now add some examples ofanticipated income to see how the

this will impact on the profitability ofthe business and also what income the

employee might expect to receive.

Rate Setter Finalising the structure

You can now amend these figures to see the impact on business profit

along with employee earnings.This can then be saved or printed.

Rate SetterProducing an offer for the candidate

You can also print a version without costs to support

a formal offer of employmentto the candidate.

Rate Setter

That concludes the demonstration.Thank you very much for watching.

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please call us on 0844 734 3465 or click the button belowto send us an email

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