The data reviewed in this article, drawn from well-known, published sources; offer an estimate of the annual costs of smoking to the average employer. These costs range from +336 to +601 in January 1980 dollars per average smoking employee. The analysis is largely based on aggregate epidemiological data and, in general, the emphasis is on the under-estimating of the costs to business. It reports "averages" true for large populations and, therefore, is not individually predictive. The cost centers dealt with are insurance, medical, and others such as absenteeism, productivity, involuntary smoking, and occupational health risk. Included is a discussion of employer-sponsored smoking cessation programs and the benefits therefrom.