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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.



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