3 ms·
Obligatory IANAL/A (I am not a lawyer/accountant). Wages and salaries can be written off as Losses on an Income & Loss sheet, so the more money is paid out to
by Dalewyn 3y ago
Obligatory IANAL/A (I am not a lawyer/accountant).
Wages and salaries can be written off as Losses on an Income & Loss sheet, so the more money is paid out to employees (executives are employees for this purpose) the less net profit the company has to pay taxes on. In that sense, paying a stupid large salary is a tax write off for the company.
Of course, the employee in question has to pay income tax on those wages/salaries on his own tax return. It also doesn't explain why (read: we all know why) the CEO gets all that money instead of hundreds of developers.
- altairprime 3y ago$7mil/year split among 500 developers* is $14,000/year, which is slightly below the US poverty line for a single person at $14,580/year. I don’t know many C++/Rust developers will work for that wage, so perhaps “hundreds” is an exaggeration. * (“hundreds” is between 200 and 999, so I split the difference in favor of the lower end of that spectrum.)