Question

Your 49 salaried workers are paid an average of $43,385 per year. How much expense will be added by giving workers one additional paid holiday? Think hard.

(Note: Please give an estimate and describe the different expenses that is added. Thanks)

Answer 1

If the paid holidays are given to the employees, the cost is borne by the company.
The different expense that is added are employer cost although he is on holiday, the company has to bear it. Along with this, medical care, retirement plan, health insurance, communting cost are borne by the company even when the employer is on holiday.
These additional costs are with regards to the money. Besides this, when an employee is on holiday, the work which he/she has to do will be on halt. If the work is urgent, the company might have to hire an additional employee which will require time, energy and some payment to the new employee. Or if the existing employee is handling the work of the person is on holiday, he/she has to be paid overtime amount.