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By Joe Marconi in Joe's Blog0 commentsIt always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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By nptrb
One change that has been causing waves is the Corporate Transparency Act (CTA) and itsBeneficial Ownership Information (BOI) reporting requirements.
On March 25, 2025, the Fifth Circuit Court of Appeals is scheduled to hear oral arguments in a case challenging the CTA. This legal battle has the potential to change the future of BOI reporting.
I’m sharing this blog post because it’s essential for you, an auto repair shop owner, to understand what this case means for your business.
Understanding the CTA and BOI Reporting
The CTA, enacted as part of the Anti-Money Laundering Act of 2020, mandates that certain “reporting companies” file BOI reports with the Financial Crimes Enforcement Network (FinCEN). For many auto repair shops, this means reporting information about the “beneficial owners,” defined as the people in your business who:
Exercise “substantial control” over the company. This can include your staff who serve as senior management or direct your business’s financial decisions. Own or control at least 25% of the ownership interests of your business. The BOI report requires the following information for each beneficial owner:
Full legal name Date of birth Current residential address A unique identifying number from an acceptable identification document (e.g., driver’s license, passport) and an image of that document. Also, if your auto repair shop was created on or after January 1, 2024, you must also report information about the “company applicants,” which are the individuals who filed the documents to create the company.
The CTA has faced criticism regarding its scope and the burden it places on small businesses.
If you’re an auto repair shop owner who is concerned about the reporting requirements, you’ll want to stay tuned for the results of the upcoming court case!
The March Court Case
The Fifth Circuit Court of Appeals’ hearing is a pivotal moment in the CTA’s history. The challenge centers on the argument that the CTA exceeds Congress’s constitutional authority, specifically under the Commerce Clause and Necessary and Proper Clause.
Opponents argue that the broad definition of “reporting company” and the extensive data collection intrude on state-level business formation and legal regulations.
If the court rules against the government, the BOI reporting regulations will be drastically altered. Here’s a look at what may come:
A complete repeal of the CTA. Amendments to the CTA to narrow its scope or simplify reporting. A stay or injunction on the enforcement of the CTA within the Fifth Circuit’s jurisdiction (Texas, Louisiana, and Mississippi), with potential ripple effects nationwide.
What This Means for YOU as an Auto Repair Shop Owner
While the outcome of the upcoming Fifth Circuit Court of Appeals hearing is uncertain, it’s absolutely critical for you, as an auto repair shop owner, to stay informed and prepared.
The Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements are still in effect, so you need to maintain compliance until the court reaches a decision.
Continue to abide by the current reporting guidelines so you do not experience potential penalties.
It’s also wise to actively monitor news and legal developments related to this CTA challenge.
If changes are put into motion, you may need to adjust your reporting practices to align with any new regulations or guidelines.
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By Joe Marconi
Over the weekend I met a 67 year old shop owner who has been in business for 41 years, and still involved in the day to day operations. He added that he has done nothing to plan for his future and his exit.
Life can throw us a curve ball at any age, are your properly prepared.
I know it sounds a little crazy, but the right time to get you business ready to sell, is when you first go into business.
What are you doing to prepare for your exit, sale or if life throws you a curve ball?
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By nptrb
Hey, auto repair shop owners! With January behind us, it means one thing is coming down the pike: tax season.
Before you grit your teeth at the thought of filing, it’s important for you to understand that staying on top of your tax obligations is crucial for the health of your business. And, as always, we’ve got your back, which is why we’re here to break down the key tax deadlines you need to keep in mind, especially as we move through the year.
Keeping your taxes in order is like keeping your shop organized. A well-maintained shop runs smoothly, and so does a business with its tax ducks in a row. In this blog article, we’re diving into some important deadlines to keep you on track.
Quarterly Estimated Taxes (Form 1040-ES)
If your business is a sole proprietorship, partnership, or S corporation, and you expect to owe at least $1,000 in taxes, you’ll likely need to pay estimated taxes quarterly.
This is because taxes aren’t automatically withheld from your business income like they are from a paycheck. Think of it as paying your taxes in installments throughout the year.
1st Quarter (Jan 1 – Mar 31): Due April 15, 2025 2nd Quarter (Apr 1 – May 31): Due June 15, 2025 3rd Quarter (June 1 – Aug 31): Due September 15, 2025 4th Quarter (Sept 1 – Dec 31): Due January 15, 2026 Missing these deadlines can result in penalties, so bookmark this post and add those dates to your calendar!
Employer Taxes
If you have employees (and most repair shops do), you have additional tax responsibilities.
These taxes are typically deposited either monthly or semi-weekly, depending on your total tax liability. The IRS provides specific guidelines on deposit schedules, so it’s essential to understand which one applies to your business. Form 941 (Employer’s Quarterly Federal Tax Return) is used to report these taxes. The due dates for Form 941 generally align with the quarterly estimated tax deadlines mentioned above.
Employer taxes include:
Federal Income Tax Withholding
You’re responsible for withholding federal income tax from your employees’ paychecks and depositing it with the IRS.
Social Security and Medicare Taxes (FICA)
You withhold these taxes from employees’ wages and also match the amount.
Federal Unemployment Tax (FUTA)
You pay this tax to fund unemployment benefits for workers who lose their jobs.
Annual Tax Returns
Of course, we can’t forget about your annual tax returns. Depending on your business structure, you’ll file different forms:
Sole Proprietorship: Schedule C (Form 1040) is filed with your personal income tax return. Partnership: Form 1065 (U.S. Return of Partnership Income) is filed to report the partnership’s income and losses. Partners then report their share on their individual tax returns. S Corporation: Form 1120S (U.S. Income Tax Return for an S Corporation) is filed to report the corporation’s income and losses. Shareholders then report their shares on their individual tax returns. C Corporation: Form 1120 (U.S. Corporate Income Tax Return) is filed to report the corporation’s income and pay corporate income tax.
The deadline for filing these returns is generally April 15th for individuals and partnerships, and March 15th for S corporations and C corporations (unless you file for an extension).
State Taxes
Don’t forget about state taxes!
These vary depending on your location but can include state income tax, sales tax, and unemployment tax. Be sure to check with your state’s tax agency for specific deadlines and requirements.
Keeping Your Taxes Organized
Keeping accurate records throughout the year is essential for meeting these deadlines and ensuring you’re not overpaying or underpaying.
This includes tracking income, expenses, payroll, and any other relevant financial information. Cloud-based accounting software can be a lifesaver here, making it easy to track your finances and generate reports. QuickBooks Online is the software we always recommend!
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By carmcapriotto
Hunt examines technician cost management within automotive repair shops shop management systems. He explores the issue of inaccurately reported labor costs, which frequently misrepresent the true financial health of the business.
Hunt discusses the underlying reasons for this discrepancy, and how they calculate technician compensation. The episode talks to various methodologies that can be employed to rectify these inaccuracies, ensuring that shop owners possess a more precise understanding of their financial obligations.
The objective of this episode is to empower our listener with actionable insights that can lead to improved profitability and operational efficiency in their businesses.
Takeaways:
The podcast discusses the critical issue of accurately recording technician costs in shop management systems, which is often miscalculated, leading to significant profit discrepancies. The episode emphasizes the importance of revising technician cost methods to reflect true expenses, thereby enhancing financial transparency and operational efficiency. Listeners are urged to assess their current payroll structures and make necessary adjustments to ensure more precise financial forecasting. Understanding the relationship between productivity and payroll costs is vital for maintaining profitability, with practical strategies provided to achieve this.
Thanks to our partners, NAPA TRACS and Promotive
Thanks to our partner, NAPA TRACS
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
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 www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: [email protected]
Text Paar Melis @ 301-307-5413
Download a Copy of My Books Here:
Wrenches to Write-Offs Your Perfect Shop
The Aftermarket Radio Network: https://aftermarketradionetwork.com/
Remarkable Results Radio Podcast with Carm Capriotto https://remarkableresults.biz/
Diagnosing the Aftermarket A to Z with Matt Fanslow https://mattfanslow.captivate.fm/
Business by the Numbers with Hunt Demarest https://huntdemarest.captivate.fm/
The Auto Repair Marketing Podcast with Kim and Brian Walker https://autorepairmarketing.captivate.fm/
The Weekly Blitz with Chris Cotton https://chriscotton.captivate.fm/
Speak Up! Effective Communication with Craig O'Neill https://craigoneill.captivate.fm/
Click to go to the Podcast on Remarkable Results Radio
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