A vacation is overhead???
Well, if you want to get technical, Vacation is part of fringe and benefits but I grouped everything under overhead. The only way to stay in business is to account for the cost of an employee as part of the “revenue” the employee may directly or indirectly generate for the organization. An employer has to account for the cost of an employees salary while they are on paid vacation in addition to the cost of their medical insurance (if company supplied), sick leave (if earned), personal time (if tracked) and the employers half of the Social security tax (7.5%).