The cost of employing a person does not end with the wages your company pays. The hourly wage you pay your employee is only a percentage of your total labor expenditure or the “hard dollar” portion of it. There are many other costs associated with labor that are not visible. These “soft dollar” costs are as much a part of your labor costs as an hourly wage, but aren’t always obvious. We’ve broken down these expenses for the average business to illustrate the real cost of labor.