That's the change, salaries can no longer be counted against revenue in the same year and has to be amortized. For tax purposes, you now have a profit of $1M (1.2M of revenue - (1M of salary * 0.2)). This makes sense for assets right, if you buy an excavator worth $1M you shouldn't be allowed to count that all against your profit because you still have ~$1M worth of excavator you could sell or something, but it doesn't make sense when applied to salaries.

EDIT: It's actually a little worse than this, you can only amortize 10% on the first year