Cost Recovery via Personal Use Chargebacks
It is very common for companies to allow mobile employees to use a company vehicle for personal reasons. Many organizations even charge their employees for this personal use, which in theory, is a fair arrangement for both parties: mobile workers offset a portion of the costs they generate while using their company vehicle for personal use, while employers recover some of the additional vehicle expenses. In practice, though, inaccurately charging for personal use costs employers a lot of money.
Employers absorb any and all extra costs that personal use chargebacks do not cover. Motus data reflects that the average cost for personal use is close to $230 per employee, per month. When compared to the national average personal use chargeback of $128 in 2015, roughly $1,200 per employee is lost to under-charging for personal use each year. Companies with dozens of employees traveling in fleet vehicles will find the costs reaching into the tens of thousands of dollars, or higher. On the contrary, the rare employee who overpays for the personal use of a fleet vehicle may feel unfairly burdened–and rightly so. Without accurate chargebacks, both employers and employees are at risk of overpaying.
Motus mileage capture solutions take mistakes and guesswork out of the equation and can save the typical fleet not charging for personal use ~$2,800 per year/per driver. It further reduces the administrative effort for drivers and managers, keeping them focused on their core job functions.
So how does it work? Each day, mobile employees capture the business mileage they drive using Motus’ mileage capture solutions. At the end of each month, employees simply submit their business mileage and month-end odometer reading to Motus- the rest is up to us. Motus calculates the true personal use for each mobile employee and reports to you the actual personal use chargeback that should be applied. With Motus’ fleet management solutions, mobile employees have visibility into the business, personal and commute mileage they record on a daily basis, and are presented the business and personal use percentages when they submit their mileage – there are no surprises – employees are displayed the amount they’ll be charged for personal use and the variables that went into calculating the chargeback amount.