Comment on How Long It Takes the Largest Companies in America to Make One Employee's Average Annual Salary

• MxM111@kbin.social ⁨1⁩ ⁨year⁩ ago

  I thing comparison to the employee salary makes no sense whatsoever. Different businesses have different expenditure structures depending on various things, like the type of business their are doing. In some companies, salaries might be dominating expense, in some others barely noticeable. Says nothing about how "fair" the business is.

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  • intensely_human@lemm.ee ⁨1⁩ ⁨year⁩ ago

    And two companies with the same proportional structure, but of different number of employees, will have different numbers in this representation.

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• Efwis@lemmy.zip ⁨1⁩ ⁨year⁩ ago

  No, salaries are based a pre-tax basis. In other words you’re told you’ll make $120,000 per year, that amount is before taxes.

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  • betz24@lemmynsfw.com ⁨1⁩ ⁨year⁩ ago

    But companies also pay taxes before even paying you. So they’ll pay 140k to pay you 120k which you’ll earn 100k (along those lines)

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    • Kaefor@lemmy.ca ⁨1⁩ ⁨year⁩ ago

      They pay tax after paying you.

      Payroll is an expense that gets deducted from revenue before calculating taxes.

      They pay employer contributions/insurance/deductions but you pay the tax on it. It’s to avoid double taxing that money (corp pays tax and you pay tax).

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      • Blackhole@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

        Companies pay tax on employees as well.

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      • betz24@lemmynsfw.com ⁨1⁩ ⁨year⁩ ago

        I have run payroll myself. When you run payroll, a company pays taxes to the government. Every paycheck. There are taxes the company is liable for and not employees.

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