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The frum community is blessed with tremendous balei tzedaka who no doubt benefit us all. Many of them are also employers of frum breadwinners of large families. Why do some find it so difficult to pay their employees generously while giving so much to charity?
After all, isn’t that the highest form of tzedaka?Charity is tax deductible higher wages means more money to pay to taxes
Charity can be discriminate wages can’t really if they hire non Jews also
Just to name a few
Wages are determined by the law of supply and demand. If you deliberately overpay, that is a common form of tsadakkah, though the government gets annoyed when a frum business puts someone on the payroll for a “make work” job at a good wage (halachically, that is probably the best way to give tsadakkah since the recipient feels they are self-supporting, but it doesn’t mesh well with the internal revenue code).
Simple: Business is business and tzedoka is tzedoka. In a business you buy and sell at market rates. You make a profit, with which you can help people.
coffee addict, wages are also tax deductible. Perhaps you mean that employees have to pay taxes on wages, while if they get a donation they do not pay taxes on it.
akumerma, how could the government know whether you’re overpaying someone?
Also Because big donations usually get recognised and drives peoples ego etc
Aka KAVODGood question , and any answer given is just gobbledygoook. That should be the employer’s 1st tzedakah of the week, but there’s no hooplah, plaque, or public honor in that.
@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,Haimy,
Excellent point. Because some of them only give if they get honored at a dinner; they won’t get that for raises.
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