A percentage of an hourly wage rate (or salary) that represents the employer's additional costs
of employee benefits such as paid vacation days, paid sick days, insurance (health, dental, life,
worker compensation), retirement plans, federal and state employer payroll taxes (Social
Security, Medicare, unemployment insurance), cafeteria, daycare, etc.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.