So that’s how she does it.
She signs authors and promotes them to a position of editor in her company.
They edit each other’s books.
Instead of paying them a flat fee per draft, she offers to “pay” them higher royalties on their own books.
That way, she thinks she can get out of calling them employees, or even freelance workers, because they’re not actually getting paid. That lets her off the hook for filing tax papers with the city, state, and IRS, she thinks, because she’s not really paying them.
Joke’s on her because whether she hands them a paycheck or offers them higher royalties, it’s still monetary compensation for work they do, and she’s still liable for it. Nice try. But, as usual, she thinks so so clever, but just like always, she got it wrong.
Joke’s on her editors because they’re probably still not getting paid the full royalties their books earn anyway..