Master Your Auto Repair Shop’s Financial Future

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@parmelis.com*
You already know how to pay your technicians — but what about everyone else? Your service advisors, your counter staff, your shop manager... how do you build a pay plan that actually motivates them to perform?

In this follow-up to last week's technician pay plan episode, Hunt Demarest walks through the three most common commission structures for front-office and management staff: paying off total sales, paying off gross profit, and paying off net income. Using a real client example — a shop owner who wants to reward his son for growing the business from $2 million to $2.5 million in annual sales — Hunt breaks down exactly how to calculate each structure, what percentage makes sense, and how to stress-test the plan before you hand it to your employee.

The big theme running through all three structures is: only reward people for what they can actually control. Paying a manager based on net income sounds fair in theory, but what happens when you buy a $30,000 side-by-side for the shop and write it off?

Hunt explains why net income plans almost never work in practice, why gross profit plans are more aligned but more complex, and why a simple percentage of sales, with a few key guardrails around gross profit floors, is often the most transparent and motivating option for most shops.

Whether you're building a plan from scratch or rethinking one that isn't driving the behavior you want, this episode gives you a clear, repeatable framework — and a reminder that none of it matters unless your employee actually understands the plan and knows how their daily actions will move the needle.

*What you'll learn in this episode:*
00:00 Intro
03:15 The benchmark that might surprise you about flat salaries
05:15 The rule every pay plan must follow relating to compensation and penalization. (08:30) A real case study and step-by-step instructions on building a payment plan.
10:20 The base pay ratio that makes or breaks a commission plan
12:00 How to protect yourself from a sales-based plan backfiring (including gross profit floors and percentage-of-increase structures)
17:40 Sales vs. gross profit plans
19:50 Shop management software vs. QuickBooks: why Hunt is adamant you should only use one of them to calculate commissions
23:40 The $30,000 side-by-side problem: why paying a manager off net income almost always ends in resentment and what to do instead.


*Connect with Hunt:* https://aftermarketradionetwork.com https://paarmelis.com/

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@parmelis.com*

What if you left college with an engineering degree and an MBA, only to realize your best opportunity was back home in the family auto shop?
In this episode, Hunt Demarest sits down with Brad Templin of Scott's U-Save, a fourth-generation automotive professional and second-generation owner running multiple locations across the Midwest. Brad shares the real story of what it's like to return to a family business after pursuing a corporate career, work alongside your mom, and navigate the challenges of succession planning in an era when private equity is knocking on every door.
Drawing on his own journey from aerospace engineering to MBA to tire tech, Brad explains why he spent his first six months working in the bays, how he and his mom built mutual respect through honest communication, and what it takes to grow a business when you're competing against both private equity buyers and the temptation of a comfortable corporate salary.
This episode tackles the hard conversations every family business faces: working with parents, handling disagreements when personal relationships are on the line, deciding between private equity offers and building something on your own, and why succession planning doesn't have to mean selling to the next generation or selling out completely.
Brad also shares practical advice on how to maintain family relationships when business tensions run high, and why honesty — even when uncomfortable is the foundation of making it work.

*What you'll learn…*
00:00 Intro
03:15 How a fourth-generation automotive family built and rebuilt across 100 years
04:35 Why Brad's great-grandfather invented the hub-and-spoke model in the 1920s—the same strategy private equity uses today
08:50 The influence of education on career paths
12:00 Cultural shifts in the automotive industry
15:33 Building trust and respect in a family business
18:15 Why Brad spent six months as a tire tech before taking on leadership
24:50 Investigating family dynamics in business
28:59 Navigating growth and trust: Separating business disagreements from personal relationships
30:00 Why Brad admits he's not the 'bootstrap entrepreneur' — and why that's okay
34:15 Private equity: How Brad and his mom decided whether to sell or keep building
37:35 The real question: 'Are we still having fun?' — and why that matters more than the money
43:10 The future of the industry
48:30 Brad's advice for struggling family businesses

*Connect with Hunt:* https://aftermarketradionetwork.com https://paarmelis.com/

*Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@parmelis.com*

What if the pay plan you've been debating isn't actually the problem?
In this solo episode, Hunt Demarest tackles one of the most argued topics in the auto repair industry: how to pay your technicians. After seeing it debated online once too often, Hunt pulls from hundreds of real shop benchmarks to cut through the noise — and his answer might surprise you.
Hunt breaks down the three main structures — flat rate, hourly/salary, and hybrid — explaining what each one actually incentivizes, where each one breaks down, and why half of his top-performing shops use flat rate while the other half don't. The takeaway: no pay plan alone will fix a production problem.
From the classic flat rate with no minimums to California flat rate, tiered hourly structures, and spiff-based systems, Hunt walks through the real-world mechanics of each — including the overtime trap that catches shop owners off guard when non-discretionary bonuses are in play.
This episode also covers team-based vs. individual pay plans, with a detailed real-world example of a six-tech shop that saw production climb for six months after switching to a team bonus structure — then slide consistently for the next 18. Hunt explains exactly why it happened and what the senior tech said that made it all make sense.
The bottom line: if you change the pay plan without changing how you manage, communicate, and operate, you're just changing the numbers on a piece of paper.
Hunt also previews next week's episode on manager and advisor pay plans, and announces that Reed Melis of Paar Melis & Associates will be teaching a class on shop pay plans at Vision in Kansas City.
*What you'll learn…*
00:00 Intro
00:08 Why Hunt dedicated a full episode to tech pay plans
01:30 Why half of top benchmark shops are flat rate — and half aren't
02:5) Understanding flat rate: the core appeal for money-motivated players
06:46 Can flat rate mask a bad manager — and can hourly survive one?
09:00 The downsides of flat rate: comebacks, culture, and sick time
12:00 California flat rate explained
14:38 Hourly and salary: the easiest pay plan — and its one massive drawback
17:00 The awkward conversation every hourly shop owner eventually has to have
19:30 The compliance issue most shops don't know they have
21:00 The most important rule of any pay plan: if they can't understand it, it won't work
22:05 Hybrid and tiered rate structures: how they work and who they work for
24:00 Spiff systems: how a simple $100 bonus can drive a 10% production increase
25:30 Team-based vs. individual pay plans: the theory, the appeal, and the culture risk
27:30 Why a team bonus structure boosted production then quietly tanked it
30:00 Pay plans as a forever-moving target: why honest conversations matter more than the structure itself

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@parmelis.com
Should your shop carry life insurance on a key employee? What if one employee's unexpected death could cost you hundreds of thousands of dollars?
In this episode, Hunt Demarest tackles everything you need to know about life insurance for auto repair shop owners and their teams — covering key person insurance, term vs. whole life policies, tax implications, and how much coverage actually makes sense for your situation.
Unlike most conversations about life insurance, this one comes with zero sales agenda. Hunt breaks down the real economics of life insurance, why it's almost never tax-deductible (and why that's actually a good thing), and the five critical questions every shop owner should ask before buying a policy.
Drawing on real client situations, from key employee coverage to bank-required policies, this episode explains when life insurance is essential protection versus when it's an unnecessary expense, and how to think through coverage amounts based on debt, dependents, and the true cost of losing critical team members.

*What you’ll learn*
00:00 Intro
02:20 Why shop owners are suddenly asking about life insurance
03:00 What key person life insurance actually is and whether you need employee permission to buy it
06:20 The real cost of losing a key employee: calculating the financial impact of a technician, manager, or yourself
11:55 Term life vs. whole life vs. universal life: the real differences explained without the sales pitch
14:35 Why term life insurance is the better choice for 99% of shop owners and when it isn't
18:50 Can you write off life insurance premiums? The non-deductible expense rule explained
19:40 Why writing off life insurance premiums is a terrible deal, even though you technically can
22:55 The five questions to ask yourself before buying life insurance: debt, dependents, goals, and money
24:15 Why life insurance is statistically a bad deal and why you should probably have it anyway
*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

Text Hunt: Got a question about ERTC or taxes? Text PAARMELIS at 301-307-5413 or email podcast@parmelis.com

Are you making end-of-year tax decisions that truly save you money, or just creating future headaches?
What if the moves you think are smart tax strategies are quietly costing you more than they save?

In this episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, walks shop owners through the most important end-of-year financial and tax considerations — and the costly misconceptions that show up every December.

Hunt breaks down which deductions actually move the needle, why retirement contributions can generate cash instead of draining it, and how poor inventory, receivables, and payroll timing can inflate your tax bill without you realizing it.

Ideal for auto repair shop owners, managers, and operators who want a clear, realistic financial outlook for 2026 — without hype, political spin, or costly misconceptions.

*What you’ll discover*
00:00 Intro
2:23 What the BOI report was, why it disappeared, and why you can forget about it
04:00 How interest rates actually moved from 2023–2025 and what shop owners are really seeing
9:40 Why slowing inflation doesn’t mean prices are coming down
13:30 The affordability problem facing consumers — and how it affects your customers
16:30 Stock market realities, AI concentration, and what precious metals signal
21:45 The truth about ERTC payments, audits, and why “fast-track” offers are scams
24:50 No tax on tips: what changed, what didn’t, and who actually qualifies
27:45 No tax on overtime — what “overtime premium” really means for employees
29:50 What employers should share with their teams about overtime reporting

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

Text Hunt: Got a question about ERTC or taxes? Text PARMELIS at 301-307-5413 or email podcast@parmelis.com

Health insurance premiums keep climbing — but 2026 could bring the biggest shakeup in years.

In this episode of Business by the Numbers, Hunt Demarest, CPA with Paar Melis & Associates, breaks down what’s happening in the small-business health insurance landscape after recent ACA subsidy changes — and why a new Republican-backed House bill could change how shop owners buy coverage and support their teams.

Hunt explains the economics behind rising premiums, who’s actually affected by the loss of ACA subsidies, and why shop owners may see new opportunities if association health plans and expanded health reimbursement accounts (HRAs) become available.

Whether you already offer health insurance or you’re considering it in 2026, this episode will help you understand what’s real, what’s political, and what’s worth watching.

Ideal for shop owners and managers who want clarity on benefits costs, recruiting strategy, and what changes may be coming in the next open enrollment cycle.

*What you’ll discover…*
00:00 Intro
02:00 The current state of small business health insurance — and why premiums keep rising 10–20% a year
05:40 How the ACA reshaped the market
06:30 What the new House bill is, why it’s being debated now, and the January 31 deadline looming in the background
08:00 Who the loss of ACA subsidies impacts most — and why many shops may see little direct effect
16:10 Association health plans: how small businesses could join buying groups like big employers (and why that could lower premiums)
19:25 Health Reimbursement Accounts (HRAs): the tax advantage shop owners may finally be able to use more flexibly
23:45 What to do now: when it’s smart to wait, when it’s not, and why open enrollment timing matters
25:00 The future of health insurance for small businesses

Text Hunt: Got a question about ERTC or taxes? Text PARMELIS at 301-307-5413 or email podcast@parmelis.com

Text Hunt: Got a question about ERTC or taxes? Text PARMELIS at 301-307-5413 or email podcast@parmelis.com

Are you unknowingly doing things that make the IRS take a closer look at your shop?
What if one “small” filing mistake dramatically increases your audit risk this tax season?
In this episode, Hunt Demarest walks through the most common tax mistakes that raise red flags with the IRS — and why many well-intentioned shop owners accidentally put themselves in the audit spotlight every year.

Drawing on real audit cases from auto repair shops, Hunt explains how filing late, amending returns, underreporting income, and mismatched 1099 reporting can quickly escalate into full-blown audits, even when nothing dishonest was intended.

This episode also breaks down why Schedule C amendments are especially dangerous, how credit card deposits and sales tax reporting can trigger IRS scrutiny, and what shop owners should do before filing to minimize risk, close the books cleanly, and move into the new year with confidence.

*What you’ll learn…*
00:00 Intro
03:00 Understanding IRS audits and common mistakes
05:45 Hunt’s personal experience with being audited
06:40 How to prevent ever getting audited
09:00 What actually increases audit risk — and what doesn’t
11:50 Income reporting and its applications
15:05 The impact of K1’s and other income sources
17:55 High-risk income types and their audit potential
21:15 Losses and their effect on audit risk
24:00 Filing strategies to minimize audit risk
27:00 Final thoughts on tax preparation and audits

*Connect with Hunt:* https://aftermarketradionetwork.com https://paarmelis.com/

Text Hunt: Got a question about ERTC or taxes? Text PARMELIS at 301-307-5413 or email podcast@parmelis.com

Are you sure you’re capturing every tax deduction your shop — and your employees — are entitled to this year?
What if missing one small detail hands more money to the IRS than necessary?
In this episode, Hunt Demarest kicks off the new tax season by breaking down the most important tax rule changes shop owners need to understand for 2026, and just as importantly, who actually qualifies for them.
From overtime deductions and tip taxation to the surprisingly nuanced rules around car loan interest and a new senior tax break, Hunt explains what’s real, what’s misunderstood, and where shop owners should (and should not) be taking action.
Using real-world payroll examples and clear math, this episode cuts through the headlines to show how these changes affect employees, owners, and families differently — and why failing to understand the details could mean leaving thousands of dollars on the table or creating unnecessary IRS risk.

*What you’ll discover…*
00:00 Intro
02:00 The four major tax changes affecting auto repair businesses this year
04:49 Why most auto repair shops do not qualify for tip deductions
07:15 How overtime deductions actually work — and what “qualified overtime” really means
09:55 How state overtime rules can complicate federal tax deductions
14:55 Why owners, spouses, and many family members do not qualify for overtime deductions
16:55 The new car loan interest deduction — and why most shop owners won’t qualify
18:00 The hidden rules that eliminate many vehicles from the car loan write-off
22:05 Why “made in the USA” matters more than brand name
23:10 When buying a new car might make more sense than a used car financially
25:25 The new senior tax deduction and who benefits most from it

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

*Text Hunt: Got a question about ERTC or taxes?
Text PARMELIS at 301-307-5413 or email podcast@parmelis.com*

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*
00:00 Intro
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

*Connect with Hunt:*
https://aftermarketradionetwork.com
https://paarmelis.com/

#taxfree #rewardteam #allowance