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. Start demonstration To close the demonstration at any time hit the Esc key.

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.

7. Rate SetterAmending charge out rates By increasing the percentage of his client time by 3% to 38% the business just about returns to profit.

8. 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.

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

10. 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.

14. 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 send us an email Play the presentation again Press escape (Esc) to close