Скачать или смотреть Reimbursements, Not Raises: The Tax-Free Pay Hack Every Shop Owner Needs

You want to help your employee with their new truck payment. You're thinking about giving them $600/month.
Here's the question: Should you give them an allowance or reimburse them for expenses?
The difference is massive:
Allowance:

Employee pays income tax on it
Employee pays payroll tax on it
You pay employer payroll taxes
$600 given = ~$450 received by employee

Reimbursement:

Employee pays $0 tax
You pay $0 payroll tax
Both get full tax deduction
$600 given = $600 received by employee

Same cost to you. Completely different outcome for your employee.
In this episode of Business by the Numbers, CPA Hunt Demarest breaks down the most misunderstood compensation strategy in small business—and shows you how to give your team MORE money without increasing your costs.
WHAT YOU'LL LEARN:
THE TAX DIFFERENCE:

Why allowances get taxed like regular income
How reimbursements stay completely tax-free
The documentation required to make it legitimate
IRS rules you need to follow

REAL CLIENT EXAMPLES:
Example 1: The $600 Truck Payment

Employee wants help with new truck
Boss plans to give $600/month "auto allowance"
Why that's essentially just a raise with extra steps
How to restructure as reimbursement instead

Example 2: The Tool Truck Payment

Tech has $200/month tool debt
Boss wants to help cover it
Via allowance: You spend $215, employee gets $150
Via reimbursement: You spend $200, employee gets $200

Example 3: Service Advisor Mileage

Add $500-$1,000 to advisor's pay via mileage reimbursement
Completely tax-free to them
Fully deductible for you
No payroll taxes on either side

THE END-OF-YEAR BONUS STRATEGY:

Want to give your team money for hard work?
Structure it right and save thousands in taxes
Both for you AND for them

THE MINDSET SHIFT:
Most shop owners try to "do the right thing" for their team by giving allowances, raises, or bonuses—without realizing they're giving Uncle Sam a huge cut that nobody needs to pay.
A smart business owner looks out for their own pocket AND their team's pockets.
This episode shows you how.
CRITICAL DISTINCTION:
This isn't about tax evasion. This isn't about gray areas. This is about using 100% legitimate IRS-approved reimbursement strategies that most business owners simply don't know exist.
WHO THIS HELPS:

Shop owners wanting to reward employees efficiently
Techs with tool truck debt
Service advisors driving for work
Any employee with legitimate business expenses
Employers who want to maximize team compensation

THE BOTTOM LINE:
You're going to spend the money anyway. Why not structure it so your employee gets the full benefit instead of giving 25-30% to taxes?
This is one of the simplest, most powerful tax strategies available to small business owners. And almost nobody uses it.

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