Did you know that as an employer that you are tax incentives for employing people who have been out of work for over a year?

Most employers don’t know the untapped potential and the hard-work ethic that the vast majority of unemployed people possess. There are almost 450,000 people signing on looking for work. What they can add to your organisation is incredible.

But you, as an employer, can also benefit from such an appointment.

Why, you ask? Simple. The monetary incentive goes towards a large portion of the wages the employer would pay the worker.

Prospective employees must be out of work for at least 12 months for this incentive to kick in however. Any person, who qualifies under this scheme, can avail of extra tax deductions (in addition to their tax credits) in each and every year of their first three years of employment with the organisation.

There are conditions that the employer must follow which include:

• A limit on the amount of remuneration that is commission only.
• The person who held the job before the incumbent must not have been dismissed unfairly.
• The employer must not have made any staff member redundant within 26 weeks previous to the incumbent employee.
• The employment must be for at least 30 hours per week and the length of employment must be a minimum of one year.
The employer would get a double deduction when calculating taxable income for the wages being paid added to the employer PRSI contribution. This deduction would also last for three years.

These double deductions could be worth anything up to 55% for employers are taxed under the income tax bracket and not the corporation tax bracket. This means that the cost of employing the person is shared between the employer and the State.

There would even be instances where the Government would actually be paying the incumbent’s salary. People could be employed at no cost to the employer.

The costs that the State would incur for enacting this scheme would be a lot less than re-capitalising the banks for mortgages that are left unpaid by the same unemployed people if they were not hired under the scheme.

It would seem that this incentive certainly behoves the employer to avail of such a scheme and the unemployed person gets a minimum 30 hour week, 12 month contract and more importantly, a wage in their pocket.

The Cycle to Work Scheme is one of those “Now Why Didn’t I Think That” ideas. It is so simplistic in its methods that it was always going to work.

The Cycle to Work Scheme was set up to provide simple and straight forward tax free bikes for employees and to give a tax break to employers who supported the initiative.

Many companies around Ireland have already availed of their wonderful initiative but there are still many companies out there who may not know how beneficial this scheme can be. So for those who don’t know the benefits or those who may not be aware of the impact it can have on their business, here is a brief rundown:

Employee Benefits:

• Workers are allowed up to 52% off the retail price of bikes and all the accessories that come with them. They can pay by the month with no added finance charges.
• They will save every week and month on transport costs (such as fuel, parking, train/bus fares).
• The health implications are astounding. The worker gets fitter and there are no stress problems associated with traffic jams.
• The worker can choose from several different brands (mountain, hybrid, road bikes etc.). Accessories and equipment will also be available to ensure road safety at all times.
• The bike will also be delivered so there is no hassle for the employee.

Employer Benefits:

• The employer will enjoy substantial PRSI savings by availing of the scheme.
• Employees don’t have to waste time looking for parking spaces.
• There will be huge savings on parking tax and any fines that may be incurred due to parking.
• A healthier, fitter workforce leads to a more productive, efficient workforce.

So how does it work, I hear you ask.

Firstly, you need to sign up to the Bike to Work Scheme to gain online access. Once there, the employees will print a quote form and purchase agreement for signing.

The employee then goes to one of the 250+ stores the initiative is live in to select their bike and equipment. The employee enters their details online and gets a secure voucher. After eligibility and approval is confirmed, an invoice is sent.

Once paid, the secure voucher is emailed to the employee and he/she sorts out the delivery.

The employee gets a new bike with the accessories, gets fit and saves money. The employer gets significant tax breaks and PRSI savings.

It has created the perfect business outcome, win-win.

This week’s offer comes to you from our good friends down at Mitchell & Son, quality purveyor of fine wines and whiskeys.

In store this week, both at their city centre hub at the IFSC CHQ and at their Co. Dublin residence of Glasthule, Mitchell & Son want all of their QBA members to avail of even more savings.

They are offering a €50 gift card for €45 or a €100 gift card for €90.

That is 10% off the regular retail price of the gift cards.

The card must be swiped through the till at the store, so this offer is only available in our shops and not online.

This is a great offer for anyone who wants to show their appreciation to their employees or to toast another great business between QBA members.

You can contact them at 01 612 5540 or visit them at their stores for further information.

So get down to Mitchell & Son to avail of this great offer, it won’t run forever so be quick!

This week’s contribution comes to us from Paschal Walsh at CMO Cash Flow Fulfilment

Q. How can I get better results from my collection calls?

A. Every collection call should have the one main objective; to collect the entire overdue balance immediately, and while this is the primary role of the Credit Manager other influencing factors are always present in the commercial business environment which can sometimes gets in the way of
achieving the primary goal.

The role of the Credit Manager or Credit Controller is to find a balance between the sales and financial objectives. To do this you should:

1) Act professionally during every contact with customers.

2) Be balanced in your approach.

3) Listen attentively to what the customer is saying, you don’t have to believe what they are telling you but you must deal with any issues they are communicating to you.

4) Don’t rise to any provocation from the customer, this will realize their objective not yours.

5) Don’t criticise the customer’s failure to deliver on past promises, find out the reason why they did not do as they agreed, agree a new arrangement and emphasise to the customer the importance of their fulfilment of the new agreement.

6) If the customer agrees to send payment you should get specific agreement regarding the date, value and method of payment.

7) Don’t tell the customer you will phone them if their payment does not arrive because this will negate the customer’s responsibility and the agreement to pay.

8) Make to customer aware of the consequences of not adhering to the agreement made or continued non-payment of their account i.e. imposition of late payment interest, possible termination of supply etc. always advise the customer that you don’t want these sanctions to occur and that you therefore need to get the account paid up to date!

9) If there are disputes on the account get the customer to provide specific not general details of the disputes and make an agreement regarding the proposed follow up i.e. who is responsible to follow up and what timelines that this should happen within.

10) Schedule follow up contacts for appropriate dates in line with what was agreed and always contact the customer on the scheduled follow up date.

11) Be assertive but not argumentative, aggressive, condescending, confrontational or sarcastic when speaking with your customer about their overdue account.

Every contact with a customer should end with an agreement i.e. a payment commitment, an agreement that you will follow up at a future date, agreement that the customer will revert on a specific date.

Persistence is very important. Calling overdue customers once a month will not achieve the desired results!

Calling once a week or more frequently will generate a greater sense of urgency about dealing with the overdue account and faster payment.

Remember:

Be prepared: Check all relevant details before you make a call.
Smile and Dial: Be positive and believe that you will get the agreement to pay you require.
It's all in the Tone: Be assertive, firm and definite about what you require.
Take Control: It’s your call, don't be manipulated, stay focused, listen and ask open questions.
that get the information you require to make an informed decision.
Nail Things Down: Summarise what has been agreed and whose responsibility it is to follow up.