Research Uncovers Technology’s Impact on Mileage Reimbursement

Today’s workforce is growing at a rapid pace, as more and more employees are driving for work. According to a forecast from IDC, mobile workers will account for 72.3% of the entire U.S. workforce by 2020. The majority of these workers will use their own personal vehicles for business purposes and will need to be reimbursed by their employer accordingly. In recent years, the mileage reimbursement landscape has matured drastically due to innovation in mobile technology. Administrative tasks that were once manual are now being automated and streamlined. The benefits brought along by these technological advances have helped business leaders ensure compliance with state and federal labor laws, create efficiencies across the business, and realize cost savings that can be reinvested back into the business.

 

  1. Ensures compliance with labor laws

 

Without a mileage reimbursement program that’s personalized to reimburse mobile employees based on where and how much they drive, an organization is putting itself in murky waters with the law. State and federal labor and employment laws, such as California Labor Law 2802, have declared that companies reimburse their mobile employees for all incurred work-related expenses. As a result of these laws, several companies over the past decade have been hit with class-action lawsuits for not properly reimbursing their mobile workers for the exact cost of doing business.

Implementing GPS technology allows companies with mobile employees to document exactly where those employees traveled for business, the exact route they took to get there and the purpose of the trip. This real-time, automated process produces accurate, digitized, IRS-compliant mileage logs — eliminating any guesswork, fraud or inaccuracy in mileage reporting. This results in full transparency and companies gain peace of mind knowing they are abiding by the law as well as reimbursing all their employees for all incurred work-related expenses.

 

  1. Creates efficiencies across the business

 

Applying a technology approach to mileage reimbursement helps companies create efficiencies across the business. With a comprehensive technology platform, both the company and its employees benefit. A CFO, for example, gains greater visibility into company spend, eliminating any element of surprise and ensuring all expenses and transactions are properly accounted for. This approach also simplifies processes by getting rid of attachments, faxes or spreadsheets across the organization.

A technology approach also allows visibility into where and how much employees drive for work, given everything is tracked via GPS technology in real-time. Removing manual processes gives an employee time back in their day to be productive in the field, spend more time with clients, and close more business — considering their mileage can be tracked and submitted with a simple tap of a button. Managers can also rest assured knowing mileage logs are accurate and the chance of mileage fraud is greatly minimized. In terms of cost efficiency, companies that employ these types of methods have reported savings of 20-30% for mileage reimbursement.

 

Key takeaways

The adoption of mobile technology for expense reporting purposes has reached 90% according to research by the Aberdeen Group. Ignoring the benefits of technology can have serious negative impacts on both mobile employees and the business. With a fully fleshed out automated mileage reimbursement program businesses ensure they are compliant with state and federal labor laws, eliminating the chance of a class-action lawsuit. They also create efficiencies across the organization and reimburse their mobile employees for the exact cost of doing business.

 

Download the research report to learn more

The Author

Jeff Porter

Read more by Jeff Porter

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