Vehicle Programs

If you have mobile employees, you’re likely using (or considering) a reimbursement program or company cars to provide for their business travel. Our posts explore these options and provide insight into selecting the right vehicle program.

  • Inaccurately reimbursing workers for business-related driving expenses costs many companies thousands of dollars every year (about $3,000 dollars per employee each year, in our experience). Large companies regularly lose hundreds of thousands of dollars year after year because of this, often without realizing their mistake. However, this is nothing compared to the costs of class…

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  • Employers have two options for providing for their mobile workers: offering company-owned vehicles (fleets) or reimbursing employees for the business use of their personal vehicles. While both programs offer many distinct benefits, there are times when offering company vehicles may make the most sense for your organization. Below, we take a look at the most…

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  • Reimbursing employees who drive for work can be tricky business. There are many “moving parts” to consider, like volatile gas prices, maintenance costs, insurance premiums, and taxes, just to name a few. To further complicate matters, wasteful reimbursement strategies have become common practice for many organizations. Over the past eleven years, we’ve found that offering…

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  • So you’ve decided to reimburse your employees for driving their personal vehicles for work. Problem solved, right? Not so fast. Vehicle reimbursement has many advantages, but those benefits can be overshadowed by unnecessary costs if you implement the wrong program. Many companies lose thousands of dollars per employee each year by using flat car allowances,…

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  • If you’ve investigated vehicle reimbursement at all, you have likely come across “FAVR.” FAVR, which stands for “Fixed and Variable Rate”, is an IRS revenue procedure that can be used to reimburse mobile employees tax-free for both the fixed and variable costs associated with driving for business. Put simply, it is the fairest, most accurate,…

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  • For as long as employees have been driving for work, there has been a need to determine their business-related driving expenses. Unfortunately, this is not as easy as collecting a handful of gas station receipts after each trip. To calculate their actual expenses of driving for business, employees must track their business mileage and their…

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  • Every business trip is different, yet many employers reimburse their workers using one static rate. This ignores costs like fuel, which changes with every trip depending on the length of that trip and where in the country workers are traveling. Keep in mind, however, the hidden costs of one-size-fits-all reimbursement programs go far beyond just…

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