Redefining How Company Cars Are Administered
Companies that require a fleet vehicle program face a unique set of challenges. The biggest obstacle? The cost of personal mileage on a company-provided vehicle. 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 a company accurately charge for this personal mileage?
Fair and accurate personal use chargebacks
Companies with fleet programs often assume a personal use percentage of total reported mileage. That, or they charge employees a flat amount like $150 per month. These methods are costly to the bottom line and unfair to 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, employees enjoy the benefits of driving a company-provided vehicle without costing the business.
Give employees an easy way to track their business trips so it doesn’t become a burden or waste any time during their workday. The Motus Platform 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 employees and the business.
Recover the cost of personal mileage.
A survey from Automotive Fleet reported that the average personal use chargeback was $139 based on flat chargeback amounts in 2019. For Motus customers, personal use chargebacks are calculated based on tracking the difference between total mileage 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, with accurate chargeback amounts.
In addition to reducing vehicle program costs, Motus helps protect 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.