Fair. Accurate. Defensible. Tax-Free.
Mobile employees who drive their personal vehicles for business incur costs on behalf of their employer, for which they must be fairly reimbursed. Motus vehicle reimbursement programs ensure employees are accurately reimbursed and provide employers the peace-of-mind that comes from a fully outsourced and defensible program.
In accordance with IRS guidelines, Motus vehicle reimbursements can be paid tax-free and take into account employees’ driving behaviors to determine the appropriate reimbursement program for each employee.
Fixed and Variable Rate (FAVR) Reimbursements
Motus’ FAVR reimbursements are based on the IRS FAVR methodology and are best suited for employees who drive at least 5,000 business miles a year. FAVR is the most accurate
reimbursement solution because it provides a customized reimbursement to each mobile
employee based on their local costs and monthly business mileage. In addition to being fair and accurate, FAVR reimbursements can be paid tax-free.
Motus’ cents-per-mile reimbursements are typically best suited for employees who drive intermittently for business and do not reach the minimum 5,000-mile threshold to qualify for a FAVR program. The reimbursement rate per mile is most often based on the standard business mileage rate set by the IRS, but can also be customized. Cents-per-mile reimbursements can be paid tax-free.