| A | B |
|---|
| Overall labor cost | A calculation done by dividing the total cost of labor by the total sales amount |
| Salaried employees | Employees who are paid a certain amount or salary, no matter how many hours are worked |
| Hourly employees | Variable and controllable wage employees who are paid strictly on an hourly basis |
| Turnover rate | The percentage of employees that leave an establishment compared to the total number of employees for the establishment |
| Unemployment insurance | A percentage charged on the wages of all employees of an establishment; the higher the turnover rate, the higher the insurance rate |
| Payroll budget | The amount of capitol allotted for payroll for a given period |
| Forecast costs | Costs that are pre-determined, expected, and planned for by management |
| Outsourcing | To hire an outside company to perform certain tasks, as opposed to the establishment’s doing it itself |
| Compensation | Expenses of an establishment indicated for the purpose of paying employees for their completed jobs |
| Current compensation | Payments to employees that are paid within a short period of time for the performance of the employees’ duties |
| Deferred compensation | Labor expenses which do not come until the future, usually after separation from employment; examples are stock options and pension. |
| Direct compensation | Money given to an employee in a paycheck. |
| Indirect compensation | Compensation that includes everything the employee is given except for the actual paycheck; an example may be offered benefits |
