When firms compare the cost of a local preparer to an offshore one, they usually compare salary to salary. That understates the real picture badly, because salary is only a slice of what an employee actually costs.

The Hidden Cost of a US Preparer

The fully-loaded cost of a US W-2 preparer includes far more than the wage:

  • strong>Base salary — the visible number.
  • strong>Payroll taxes and benefits — often 20–30% on top.
  • strong>Recruiting cost — agency fees or the time spent sourcing.
  • strong>Office and equipment overhead.
  • strong>Ramp and training time before they are productive.
  • strong>Turnover risk — replacing a preparer who leaves resets much of the above.

Add it up and the true cost of a US preparer is meaningfully higher than the salary line suggests.

The Cost of a Dedicated India-Based Preparer

A dedicated, US-tax-trained preparer in India is typically engaged through a single, predictable monthly or annual rate that already bundles recruiting, training infrastructure, and overhead. There are no separate benefits loads or office costs on your side, and the rate itself is a fraction of a comparable US salary.

Comparing Apples to Apples

The honest comparison is fully-loaded US cost versus all-in offshore cost — not salary versus salary. On that basis, firms commonly find a dedicated offshore preparer costs a fraction of the local equivalent for comparable preparation work.

What You Are Really Buying With the Savings

The point of the cost difference is not just a cheaper line item. It is what the savings let you do:

  1. Fund your senior local team without margin pain.
  2. Take on more engagements profitably.
  3. Stop losing work to capacity limits.

A Word of Caution

Cheapest is not the goal — value is. A poorly vetted, unverified preparer who produces work your reviewers have to redo costs more than they save. The real win comes from a vetted, US-tax-trained, dedicated preparer where the cost advantage and the quality both hold up.

Run the fully-loaded numbers for your own firm before you decide. The gap is usually larger than owners expect.