When you are in business, money is always of equal importance to what you are creating. In this instance, that means the overhead expense, namely, the cost of your employees. Businesses need to provide for their employees in one way or another, and this often involves employees’ pay.
So, what does it mean for the average employee to be in a job that pays more than $18 an hour? Well, if you are paying only $18 an hour, how are you still making more than $16,000 per year? Because if you are earning that much, then you have to have more money. I know this, because I have friends and acquaintances who earn close to a million dollars a year and yet they are still paying a pittance for the privilege.
That’s because, according to the IRS, they are. They are also very good at hiding it. If the IRS were to find out that you were actually making $18,000 a year or more, they might consider you to be someone with a very small amount of money that they just don’t want to have any more of. A good example of this is Walmart.
Walmart sells goods to stores for $5.99/each (or $9.99 for 3 bags of groceries), but according to the IRS, they are actually making $18,000 a year. And they are not paying an employee a salary. Walmart has a policy of using an overhead expense to pay for the cost of hiring people and keeping them employed.
Walmart is definitely not the only company that pays employees for overhead. For example, Costco pays its employees an hourly wage for overhead. It is an overhead expense so the company is not paying for all the employees’ overhead costs. In fact, there are companies that pay their employees a percentage of their income. In most cases the percentage is lower than the hourly wage.
Walmart also pays its employees a set amount to compensate them for the total expense of the company. This amount varies per company and per employee. For example, Amazon pays its employees a percentage of their income to cover the cost of their products.
When you figure out how much it costs to run a company, you can also figure out how much your company is paying its employees. This can give you a general idea of how much overhead you’re paying for.
This is a great example of a business that uses an “overhead expense policy”. Walmart, for instance, allows employees to have a company-paid vacation, but pays only a percentage of their gross receipts for every employee to cover the costs of that trip.
The average Walmart employee is paid $7.50 per hour, so that leaves them with $2,979 to pay for a company-paid vacation. This is then divided by the average Walmart employee that earns $7.10 per hour to get their average hourly wage. So Walmart is paying its employees $2,500 over the course of a year.
The point of the company-paid vacation policy is that it helps make sure that Walmart’s employees aren’t paying for travel for personal reasons. The problem with this policy is that it’s only true for employees who are paid a fixed amount. There are other companies who have a policy of allowing employees to pay for their own trips, but Walmart is the one that makes the policy and it’s hard to argue with the fact that Walmart employees only have to pay for one trip on a yearly basis.