Quote:
Originally Posted by zeniamoina
Is there any relation between permanent employee vs contractor costs to capex/opex of a company ?
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Yes - namely payroll tax, superannuation, workers compensation, long service leave, sick leave, annual leave, training, etc.
All of the permanent employee costs have to be placed under opex (with very few exceptions).
Using contractors gives a company more control long term, and particularly in the IT industry is far cheaper since the contractor usually has to pay for their own training.