Labor burden
The actual costs incurred by a business, outside of an employee's wage or salary, to support their employment, including costs such as health and insurance benefits, payroll taxes, etc.
Labor burden refers to the indirect costs associated with employing workers, including taxes, insurance, and benefits. Understanding labor burden is essential for accurate job costing and financial planning, as it significantly impacts project budgets and profitability.
Used in a sentence
The labor burden includes indirect costs such as taxes and benefits, impacting overall project expenses.
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