Comment by gscott
6 months ago
I thought wages were deductible anyway. Say you pay a developer $250,000 a year. The employee pays the tax on their own wages.
6 months ago
I thought wages were deductible anyway. Say you pay a developer $250,000 a year. The employee pays the tax on their own wages.
No, not in this case. 250k is an expense for the company. Company had to amortize this expense over 5 or 15 years. (15 for software engineers outside of the US)
> (15 for software engineers outside of the US)
Yikes. Does that apply to outsourcing?
W2 salary is different from fully loaded labor cost.