Rate Setter Introduction

1
Rate SetterIntroduction
Rate Setter is designed to help firms calculate
charge-out rates for 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 calculate earnings
packages for employed or self employed advisers.
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2
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.
3
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
4
Rate SetterAdding employee information
Add the information for all staff but initially
leave the charge out rate blank. A proportion of
the business costs have been assigned to each
employee based on their earnings and
minimum charge rates calculated for each.
With the help of these calculations, add a
charge-out rate for each employee
5
Rate SetterApplying an hourly charge out rate
By adding the charging rates the
anticipated income for each employee is
calculated in the final column and the Profit /
Loss at the top of the screen has been updated.
6
Rate SetterAmending charge out rates
You can now amend any of the yellow fields to
see how this will impact on profitability. If
the director increases his drawings to 75,000 he
will need to increase the amount of time he
spends with clients or increase his charge out
rate or both.
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Rate SetterAmending charge out rates
By increasing the percentage of his client time
by 3 to 38 the business just about returns to
profit.
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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.
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Rate SetterRecruitment and Reviews
This section deals with recruitment and existing
employee salary reviews. Simply complete the
yellow fields.
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Rate SetterAdding up the costs and setting
commission targets
Add the additional costs associated with
employing this person
11
Rate SetterBusiness profitability and employee
earnings estimates
Now add some examples of anticipated income to
see how the this will impact on the profitability
of the business and also what income the employee
might expect to receive.
12
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.
13
Rate SetterProducing an offer for the candidate
You can also print a version without costs to
support a formal offer of employment to the
candidate.
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Rate Setter
That concludes the demonstration. Thank you very
much for watching. If you would like more
information or a live no obligation online
demonstration of any of our products, please call
us on 0844 734 3465 or click the button below to
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