@Coffeeaddict
Charity is tax deductible….up to a limit.
“Wages mean more money to pay to taxes” ????????????????????????
Wages are a direct expense and the higher the wages a business pays the lower the taxable profit will be.
Yes, the recipient may have to pay taxes on the wages, BUT if frum with 8 kids, he probably doesn’t have to pay income tax. There is a cap on Social Security Tax and Unemployment tax, it is not on every dollar earned. Again the employers Social Security Tax and Unemployment taxes are direct business expenses lowering the net taxable profit of the business.
That said, many frum Baalei Batim pay salaries through their businesses (as I do) but give Tzedaka from personal funds, so it is not a choice to have the business expenses go up so the personal expenses go down.
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Non union wages are individually negotiated and a business can pay different employees different wages for similar jobs as long as the reason to do so isn’t discriminatory to a protected class. I can’t pay Chaim more than Susan because she’s a woman, but can if it’s because I think he has better knowledge of the business and my needs,