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Hiring folks on contract was less expensive due to the lack of US domestic taxes (e.g. social security). With Section 174 changes, though, that's not the case
by jodacola 3y ago
Hiring folks on contract was less expensive due to the lack of US domestic taxes (e.g. social security).
With Section 174 changes, though, that's not the case anymore, and I've spent a lot of time understanding that (because of the 15 year amortization). I won't get on my soapbox about Section 174 stuff and derail this thread. Check it out, though!
edit: missing content/context
- AznHisoka 3y agoGotcha. Is that making you lean towards hiring domestically now instead of overseas, or is the cheaper rates still worth it at the end of the day?
- frfl 3y agoI haven't read up too much about 174. Are you suggesting contractor pay can't be written off anymore as well, and thus is less attractive, even at a lower dollar/hour cost, than hiring domestically?
- maxvt 3y agohttps://blog.pragmaticengineer.com/section-174/ https://blog.pragmaticengineer.com/section-174/ is a good read on Section 174, for those who might be curious.