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Why is the hourly cost of a labor for the business higher than the amount stated as wage paid to the employee?
Wiki User
∙ 11y ago
The employers' hourly costs would include a pro rated share of any longer-term benefits paid on the employees' behalf, such as insurance, unpaid leave (which reduces employer efficiency). It would NOT include taxes deducted from employee paychecks, since those are costs to the employee, not the employer.
You could include other employee-related costs, but they are not considered "wages", such as the cost of uniforms, travel on business, etc., but rather "business expenses".
Wiki User
∙ 11y ago
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