For companies who are required to administer a fleet vehicle program, you’re faced with a unique set of challenges. The biggest obstacle? The cost of personal mileage on a company-provided vehicle. Your employees are using the vehicle to perform their job duties but they also need to make personal stops like running an errand or dropping off their kids at school. How can you accurately charge for this personal mileage?
Fair and accurate personal use chargebacks
For companies with fleet programs, you’re likely assuming a personal use percentage of total reported mileage or charging your employees a flat amount like $150 per month. These methods are costly to your bottom line and unfair to your employees who may or may not be incurring that much personal mileage.
There’s a better solution. Motus calculates the exact amount to charge employees for the personal use of their company-provided vehicle based on GPS-verified mileage logs. Chargeback calculations are specific to the individual employee — measuring their business mileage against their monthly odometer reading. With fair and accurate chargebacks, your employees enjoy the benefits of driving a company-provided vehicle without costing the business.
Give your employees an easy way to track their business trips so it doesn’t become a burden or waste any time during their work day. The Motus App automates mileage tracking with GPS-verification to quickly track stops and calculate a fair amount for personal chargebacks. And it’s entirely driver-initiated so there’s no privacy infringement. With Motus, it’s a win-win for both your employees and the business.
Recover the cost of personal mileage.
A survey from Automotive Fleet reported that the average personal use chargeback was $134 based on flat chargeback amounts in 2017. For Motus customers, personal use chargebacks are calculated based on the actual personal and business mileage for each individual employee, factoring in the specific costs of operating their vehicle. With this level of accuracy, the average personal use chargeback across Motus customers was $176 per employee in 2017. With Motus, you’re able to recoup the significant costs of personal mileage with accurate chargeback amounts.
In addition to reducing vehicle program costs, Motus protects your business in the case of an audit. Since the IRS requires that employees maintain detailed mileage logs to substantiate business and personal use of company-provided vehicles, there are no surprises for the employee or business during tax reporting season.