Labor Forecasting And Budgeting

1.2 Many companies do not realize the true hourly costs of their employees, but only work with the hourly wage rate. The true hourly cost is usually considerably higher than the hourly wage rate due to employer paid taxes and benefits provided. 1.3 Based upon the seasonality of the business, labor is based upon six months of operation. Any additional labor costs beyond this time frame should be recovered by the income generated.