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Labor Burden: What One Hour of Your Crew Really Costs

Labor Burden: What One Hour of Your Crew Really Costs

by Israel Diaz | Oct 20, 2026 | Accounting, Contractors

A $9 error in your cost per hour sounds small. Across 60,000 billable hours it is $540,000 (example numbers). Sixty thousand hours is not a giant company. It is roughly 40 techs, each billing about 1,450 hours a year. Plenty of HVAC, plumbing and electrical shops in...
Change Orders and Callbacks: The Work Contractors Do for Free

Change Orders and Callbacks: The Work Contractors Do for Free

by Israel Diaz | Oct 16, 2026 | Contractors, Small Business

The install made 31 percent. Then the same unit called back three times. First a loose wire. Then a thermostat. Then a drain line during a cold snap. Every visit was warranty, so every invoice said zero. Here is the part that matters. In the system, that install still...
S Corp Reasonable Salary for Contractors: Too Low, Too High, and What the IRS Looks At

S Corp Reasonable Salary for Contractors: Too Low, Too High, and What the IRS Looks At

by Israel Diaz | Oct 15, 2026 | Contractors, Taxes

His salary was set when the company did $900,000 a year. It does $4 million now (example numbers). That was seven years ago, and the number made sense back then. He ran one crew, did his own estimates and pulled his own permits. Since then he added three crews, a shop...
Year-End Tax Planning for Contractors: What Still Works Before December 31

Year-End Tax Planning for Contractors: What Still Works Before December 31

by Israel Diaz | Oct 14, 2026 | Contractors, Tax-planning strategy

Last year, a plumbing contractor started his year-end tax planning on December 28. That left him three business days. The options that needed setup time were already gone. What was left was rushing and guessing. In April, the bill came in about where he expected, and...
  • Labor Burden: What One Hour of Your Crew Really Costs
  • Change Orders and Callbacks: The Work Contractors Do for Free
  • S Corp Reasonable Salary for Contractors: Too Low, Too High, and What the IRS Looks At
  • Year-End Tax Planning for Contractors: What Still Works Before December 31
  • What Is Your Contracting Business Actually Worth? How Buyers Value HVAC, Plumbing, and Electrical Companies
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