You said:...

"Add in %20 for payroll taxes, unemployment taxes, workmans comp. Add in 10-30% for health insurance, depending on how many dependents she has. Add in %15-20% for 401k contributions."...

All of the so called "additinal benefits" you enumerate are legally mandated to distinguish us from the WILD WEST ideas of "At Will" employment...

Bottom line, EDIG NEEDS AN ACCOUNTANT and they got A QUAILFIED PERSON to do the job. If, as you note, her compensation is appropriate, then all other issues you set forth are not germane...

Actually, the company may have gotten a write-off for NEW HIRES which Congress passed to encourage employment of th unemployed...

Gil...