Episode 199
Stop Paying Taxes You Don’t Owe: The Tax-Free Way to Reward Your Team [E199]
Thanks to our partners Promotive and Wicked File
Are you rewarding your team, or paying extra taxes to do it? Could a few words on your payroll save you thousands a year?
In this episode, Hunt Demarest, CPA with Paar, Melis & Associates, explains why the difference between an allowance and a reimbursement could save both you and your employees thousands of dollars a year.
From cars and cell phones to tool truck payments, Hunt breaks down how changing just a few words on your payroll setup can turn a taxable perk into a tax-free benefit. Through clear examples and real-shop math, he reveals how to keep Uncle Sam’s cut out of your employee bonuses and put that money back where it belongs — in your business.
If you’ve ever handed out end-of-year bonuses, paid mileage, or covered employee phone bills, this episode will show you a smarter, legally compliant way to do it.
Shop owners, service advisors, and bookkeepers who want to reward staff without paying unnecessary payroll taxes.
What you’ll discover…
(02:00) How a small change in wording saves 25–30% in taxes
(04:10) Why giving an “auto allowance” is the same as providing a raise
(07:10) Cellphone allowance insights
(11:00) Tools allowance and reimbursement insights
(11:40) How a $200 tool payment becomes $150 after taxes, and how to make it a full $200 with one form
(14:10) What the IRS calls “fringe benefits” and how to use them responsibly to benefit both sides
(14:30) Turning bonuses into reimbursements so your team keeps 100% of their money
Thanks to our partner Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/
Thanks to our Partner WickedFile
Turn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/
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