Small Business Tax Savings Podcast

Latest Episodes:

How to Reimburse Yourself Tax-Free (The Accountable Plan Explained) Oct 29, 2025

Show notes

If you’ve ever paid for business expenses out of pocket, like your phone bill, internet, or home office, and wondered if you can get reimbursed without paying more tax, this episode is for you.

In this episode, you’ll learn how an Accountable Plan lets business owners legally reimburse themselves and their employees tax-free. You’ll also discover the 4 key rules every plan must follow to stay IRS-compliant, and the most common mistakes that lead to audit trouble.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) The Overlooked Tax Strategy That Saves Thousands
What is the Accountable Plan? This allows you to get reimbursed for business expenses you paid personally without triggering extra income tax.

(01:10) What Is an Accountable Plan?
A simple breakdown of how this reimbursement policy works and why it’s essential for S Corps and C Corps.

(02:44) Who Needs an Accountable Plan
When owners and employees qualify, and why sole proprietors handle this differently.

(04:14) How to Set It Up Step-by-Step
The 3 essential steps to properly implement an Accountable Plan include creating a written policy, using expense report templates, and making reimbursement payments.

(08:35) Common Expenses You Can Reimburse Tax-Free
Examples like home office, internet, travel, mileage, subscriptions, and meals that qualify under an Accountable Plan.

(10:30) Avoid These IRS Red Flags
Why documentation, receipts, and timely reimbursements matter, and how to keep your plan audit-proof.

(11:45) Quick Recap & Next Steps
The four key rules of Accountable Plans are that expenses must have a clear business connection, be properly documented, exclude any excess reimbursements, and be submitted on time.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙌LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Turn Medical Bills Into Tax Deductions (4 Ways to Deduct Health Costs) Oct 22, 2025

Show notes

A single medical bill can wipe out your profits. But health expenses don’t have to drain your cash flow.

In this episode, you’ll learn three powerful ways to turn your medical costs into legitimate tax deductions. From self-employed health insurance and Health Savings Accounts (HSAs) to Section 105 reimbursement plans and employee health benefits, these strategies can help business owners save thousands while staying fully IRS-compliant.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) Turning Health Costs Into Tax Savings
Health expenses can become powerful deductions when structured properly. Learn how small business owners can legally reduce taxes through insurance, HSAs, and reimbursement plans.

(00:45) Self-Employed Health Insurance Deduction
How sole proprietors, LLCs, and S Corp owners can claim health insurance premiums as deductions, and the exact steps S Corp owners must follow to stay compliant.

(04:03) The Triple Tax Benefit of HSAs
How Health Savings Accounts offer tax-free contributions, growth, and withdrawals, and why treating your HSA like a retirement account can build long-term wealth.

(08:28) Section 105 Medical Reimbursement Plans
For business owners with high out-of-pocket medical costs, this plan turns personal medical expenses into deductible business costs when set up correctly.

(10:11) Health Benefits for Employers
Affordable options for small businesses to offer tax-free health reimbursements through QSEHRA or ICHRA plans without the complexity of traditional group insurance.

(13:06) The Four Keys to Health Tax Strategy
How to combine these tools: Insurance deductions, HSAs, Section 105 plans, and employee benefits, to lower taxes and protect your cash flow.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

Why Every Family Needs a Trust & LLC (Not Just the Rich) Oct 15, 2025

Show notes

Trusts aren’t just for the rich. Every family can benefit from one. A revocable living trust can simplify estate planning, avoid probate, and create a foundation for generational wealth.

In this episode, Mike Jesowshek, CPA, sits down with Jack Fiveash, attorney and co-founder of The Co Letter, to talk about how families can use a simple trust and LLC structure to build long-term stability, protect assets, and involve their children in smart financial stewardship.

They cover how to start a revocable trust, the ideal timing, what it costs, and how it ties into a broader family office structure that preserves both wealth and values.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) Intro to Family Office Structures
A family office isn’t only for the ultra-wealthy.

(02:41) Understanding Revocable Living Trusts
What is a revocable living trust (RLT), why every family should have one, and how it simplifies estate planning.

(04:43) When to Create a Trust for Your Kids
Jack explains the right time to create a trust for children and how even young people with digital assets or investments can benefit from having one in place.

(06:53) Cost and Process of Setting Up a Trust
Jack outlines realistic pricing, what makes a trust legally sound, and the importance of completing a general assignment to fully fund the trust.

(09:44) Funding the Trust and Avoiding Probate Issues
Jack describes how a trust must be properly funded through title changes and assignments to avoid probate disputes later.

(10:22) Involving Family Members Early
Jack and Mike discuss including children in the family LLC, teaching financial stewardship, and using legitimate methods to instill responsibility and long-term wealth habits.

(13:38) Family Business Meetings and Board Structure
How to formalize family board meetings, even on vacations, to build both structure and tax efficiency.

(18:30) Structuring Family Business Entities
When to create new entities versus using existing businesses, how to integrate wills and trusts into ownership.

(20:46) Building a Foundation for Generational Wealth
Jack offers guidance for those just starting to build wealth: How to use simple structures like family LLCs or educational trusts to create lasting value for children and grandchildren.

Learn more about family trusts, LLCs, and governance at https://thecoletter.beehiiv.com

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

Advanced Tax Strategies the Ultra-Wealthy Use (and How You Can Too) Oct 08, 2025

Show notes

If you earn over $250,000 or plan to sell a highly appreciated asset, this episode could save you hundreds of thousands in taxes. Most business owners stop at basic deductions and retirement plans, but the wealthy use strategies that go far beyond that.

In this episode, we break down the five categories of advanced tax planning, when they apply, and how to use them the right way.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) When Advanced Tax Planning Matters
Why high-income earners and those selling appreciated assets should consider advanced strategies.

(01:00) Core vs. Advanced Strategies
The difference between foundational tax tactics available to everyone and advanced ones designed for high earners or large one-time gains.

(03:10) The Government Rewards Tax Planning
How tax incentives are built to encourage investment in business, housing, and energy projects.

(05:00) The Five Categories of Advanced Tax Strategies
An overview of the five areas where the wealthy focus their planning.

(05:23) Advanced Retirement Planning
Cash balance plans, mega backdoor Roths, non-qualified plans, and self-directed accounts for those already maxing out standard retirement limits.

(06:24) Asset Purchase Strategies
Using leverage and depreciation to create large year-one deductions. Example: turning a $10,000 down payment on a Turo car into a $100,000 deduction.

(08:00) Asset Donation Strategies
Buying assets at a discount and donating them at full fair market value to increase charitable deductions.

(09:00) Oil and Gas Investments
How investors receive 80 to 90 percent year one deductions through intangible drilling costs and depletion allowances.

(10:14) Captive Insurance Companies
Creating your own insurance company to protect your business while shifting income into a tax-advantaged structure.

(11:16) What to Consider Before Using Advanced Strategies
Material participation requirements, IRS scrutiny, vendor due diligence, and understanding investment or loan obligations.

(14:00) Finding the Right Fit
Why working with a tax strategist helps you find the combination of strategies that fits your goals.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

Turn Everyday Expenses Into Deductions (Max Out Your Tax Savings) Oct 01, 2025

Show notes

Are you spending money the wrong way? Every dollar is either pre-tax or after-tax money. Knowing the difference is the key to thousands in tax savings.

In this episode, we cover how to turn everyday expenses into business deductions. From meals and travel to home office and even hiring your kids, you’ll learn the mindset shift that could save you thousands each year.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) Pre-Tax vs. After-Tax Spending
Why most business owners spend the wrong way and how to flip it.

(01:18) Ordinary and Necessary Expenses
What makes an expense deductible, and how to pass the audit test.

(04:00) Everyday Costs You Can Deduct
Home office, vehicle, meals, travel, tech, cell phone, and subscriptions.

(06:27) Hiring Your Kids
How shifting family costs into payroll creates big tax savings.

(08:24) Live Audit of a Credit Card Statement
Mike reviews personal spending line by line to uncover missed deductions.

(13:10) The Framework for Deductions
Rationale, recordkeeping, and reasonableness: How to defend expenses.

(14:45) Documentation Tips to Protect Yourself
How to prove expenses with receipts, notes, and an accountable plan.

(16:15) Action Steps to Maximize Tax Savings
Start small, pick categories, and track better to save thousands. $100 pre-tax is worth $100. $100 after-tax is only worth $65.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

Live Case Study: How We Cut $20K+ Off His Tax Bill (Step by Step) Sep 24, 2025

Show notes

What happens when you take a real small business owner, put them in the hot seat, and break down their tax strategy live? That’s what we’re doing in this episode.
Eric runs a successful appraisal business, pays himself through an S-Corp, and last year wrote a $50,000 check to the IRS. Did he really have to? Mike digs into Eric’s setup and reveals how simple shifts could slash his tax bill. From adjusting his salary to using the Augusta Rule, hiring kids, and planning for real estate, you’ll see how the right strategy can cut thousands off your tax bill.
👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit
🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/
Here's What We Discussed:
(01:21) Income Breakdown
$200K profit in appraisal business, break-even martial arts school, plus wife’s part-time job.
(03:09) Current S Corp Salary Setup
Eric takes $120K-$140K salary. Mike shows how lowering it could save $8K-$9K annually.
(06:25) Why Two S Corps Cost Too Much
Running payroll twice and filing two returns is unnecessary. A smarter setup is to use one holding S Corp that owns your other businesses (but only for active businesses, not passive income like rentals.)
(09:07) Retirement Planning Made Simple
How Eric can prioritize HSA, IRA, and SIMPLE contributions to maximize tax benefits.
(10:32) How to Determine a Reasonable Salary as an S Corp
Start with 30-50% of profit, then back it up by tracking how many hours are spent on core tasks. Use labor statistics to assign hourly rates (this builds audit protection and ensures you’re not overpaying in payroll taxes).
(17:42) Maximizing Deductions You Already Have
Use an accountable plan to capture deductions you might miss. Home office, mileage, meals, and travel can all qualify when tied to business.
(21:00) The Power of a Board + Augusta Rule
Set up a board, hold meetings at home, and rent your house tax-free.
(26:40) Hiring Kids the Right Way
When to use W-2 vs. 1099 and how to turn family support into deductible expenses.
(36:15) Real Estate and REPS Strategy
How cost segregation and bonus depreciation could create six-figure deductions.
(41:58) Core vs. Advanced Tax Strategies
What every business owner should implement now and what comes next as income grows.
👉 U.S. Bureau of Labor Statistics (BLS) – https://www.bls.gov/oes
Podcast Host:
Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com
🚀 Visit: https://www.TaxSavingsPodcast.com
🚀 Check Out TaxElm: https://taxelm.com/
🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/
🚀 YouTube: www.TaxSavingsTV.com
👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

🎙 ABOUT THE PODCAST
The Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.

Auto Deductions Explained: The 2025 Tax Rules You Need to Know Sep 17, 2025

Show notes

Most business owners are driving right past thousands in tax savings without realizing it. In 2025, the IRS raised the standard mileage rate to 70 cents per mile, but that’s only the beginning.

In this episode, Mike breaks down exactly how to structure your auto deductions, avoid costly mistakes, and choose between the mileage method and actual expenses.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) You’re Missing Out on Auto Deductions
Most business owners overlook vehicle write-offs that could save thousands.

(01:00) What’s New for 2025
IRS mileage rate jumps to $0.70 per mile, plus bonus depreciation returns to 100%.

(03:15) Mileage Method vs. Actual Method
How each deduction works and the rules for switching methods. Low-cost, high-mileage cars lean mileage. High-cost, heavy vehicles lean actual.

(08:10) The 6,000-Pound Vehicle Rule
How GVWR impacts deductions and when Section 179 + bonus depreciation apply.

(09:50) Recordkeeping Requirements
Mileage logs, receipts, and documentation you’ll need if the IRS asks.

(13:00) What Counts as Business Miles (and What Doesn’t)
Meetings, errands, and client visits qualify. Commuting does not.

(16:12) Real-Life Example: $7,000 vs. $10,000 Deduction
Side-by-side comparison of mileage vs. actual expenses.

(18:32) How to Claim the Deduction by Entity
Schedule C for sole props vs. accountable plans for S-Corp owners.

(19:51) Action Steps to Maximize 2025 Auto Deductions
Pick your method, track carefully, and understand depreciation rules.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

The Home Office Deduction Explained: How to Save Up to $1,500 a Year Sep 10, 2025

Show notes

Do you have a home office? The desk you’re sitting at could save you up to $1,500 a year in taxes.

Many business owners skip this deduction because they think they don’t qualify or fear an IRS audit. The truth is, most do qualify. One client of mine saved $1,100 in just 30 minutes by setting it up.

In this episode, Mike Jesowshek, CPA, explains who qualifies, the two ways to calculate it, how to document properly, and the mistakes that cause business owners to miss out. You’ll also learn how the home office deduction can unlock other tax savings like business mileage.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters

(00:00) Why Most Business Owners Skip the Home Office Deduction
The $1,500 opportunity that too many entrepreneurs ignore

(01:00) Real Client Example: $1,100 Saved in 30 Minutes
How a quick calculation turned wasted expenses into major tax savings.

(03:00) Who Qualifies? The 2 Rules You Must Meet
Regular and exclusive use + principal place of business (with the administrative loophole explained).

(09:00) Two Ways to Calculate: Simplified vs. Actual
$5 per square foot up to 300 sq ft vs. percentage of actual costs: When to use each method.

(13:00) Where to Take the Deduction (Sole Prop vs. S-Corp)
Schedule C, Form 8829, and how to handle it with an S-Corp accountable plan

(14:30) Common Mistakes That Kill Your Deduction
From mixing personal use to failing to document properly… What to avoid

(17:30) In Summary
Why this deduction can be worth $1,500+ every year, and how it also unlocks mileage deductions

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

Sell Your Company with $0 Taxes? QSBS Explained Sep 03, 2025

Show notes

Some entrepreneurs sell their companies and walk away with zero federal taxes. How?

This is thanks to a strategy called QSBS.

In this episode, tax strategist Alessandro of Get Dynasty breaks down Qualified Small Business Stock, new changes from the “Big Beautiful Bill,” and how founders can use trusts to multiply tax-free exits. If you’re building or investing in startups, this could be the single most powerful tax break you’ll ever use.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters:

(00:00) How Founders Pay $0 in Taxes With QSBS

The “greatest tax exemption that exists” and why startup founders need to know it.

(00:48) What is QSBS and Who Qualifies

Key rules, industries that benefit, and those excluded (law firms, banks, services).

(03:30) Can LLCs and S Corps Still Benefit?

How to flip into a C Corp, restart the clock, and unlock bigger gains.

(06:05) Real Example: $126M of QSBS Eligibility

How flipping from LLC to C Corp can multiply your tax-free exclusion.

(08:10) New Rules From the Big Beautiful Bill and Why States Matter

Exclusion raised to $15M, partial exclusions after 3–4 years, and $75M asset threshold, plus, which states recognize QSBS?

(15:00) Don’t Be Too Early, Don’t Be Too Late

The timing mistakes founders make when setting up QSBS.

(18:30) Stacking QSBS With Trusts

How Get Dynasty helps founders create trusts for $40M+ in tax-free gains.

(23:00) Avoiding Common Mistakes

Why planning early is critical and why TikTok tax tips miss the bigger picture.

(27:30) Success Stories: Roblox and Beyond

How founders have shielded $40M–$120M from taxes using QSBS trusts.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

Independent Contractor or Employee? Hiring Mistakes That Trigger an IRS Audit Aug 27, 2025

Show notes

Misclassifying workers is one of the biggest mistakes a business owner can make. It might seem cheaper to pay someone as a 1099 contractor, but if the IRS says they should be a W-2 employee, you’re looking at back taxes, penalties, and possible audits that could cripple your business.

In this episode, Mike breaks down the IRS framework for worker classification, the red flags that trigger audits, and the tax differences between employees and contractors. You’ll learn how to protect your business, avoid costly penalties, and even find tax strategies that benefit both employers and contractors.

👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit

🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/

Chapters:
(00:16) Why Misclassification Is a Major IRS Red Flag
When workers are incorrectly classified as contractors instead of employees, the employer becomes responsible for unpaid payroll taxes, Social Security, Medicare, unemployment taxes, plus penalties and interest.

(04:01) What Triggers an IRS Audit
Unemployment claims and disgruntled workers are the two most common red flags.

(05:43) The IRS 3-Factor Test
Worker status is based on behavioral control, financial control, and the overall relationship.

(09:47) Signs of an Employee vs Contractor
Clear examples that distinguish W-2 employees from 1099 contractors.

(12:29) Tax Treatment of Each Worker Type
How payroll taxes, reporting, and deductions differ between W-2s and 1099s.

(15:22) Practical Tips for Staying Compliant
Contracts, scope of work, and how to defend your classification in an audit.

(16:31) Tax Strategies for Employers
How hiring employees changes access to tools like the Solo 401(k).

(17:08) Tax Strategies for Contractors
Turning a 1099 gig into a business with deductions, retirement plans, and S Corp elections.

Podcast Host:

Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings Podcast
Join TaxElm: https://taxelm.com

🚀 Visit: https://www.TaxSavingsPodcast.com

🚀 Check Out TaxElm: https://taxelm.com/

🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/

🚀 YouTube: www.TaxSavingsTV.com

👋🏼 GET IN TOUCH
You can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏

🙏 LEAVE A REVIEW
If you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐

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