While car allowances may seem like a quick and simple way to reimburse your employees for their business miles, they often lead to significant tax waste and expenses. Our posts explore the challenges of using an auto allowance program and more effective alternatives.
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Mobile workers incur a wide range of expenses as they drive, from fuel and maintenance costs to insurance premiums and depreciation, and they must be repaid accordingly. Tracking, processing, and reimbursing accurately for these costs is not always easy though, particularly for companies with many mobile workers. The reality is, companies have several options…
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Flat car allowance models, in which single, company-wide rates are used to reimburse all employees for any business travel, have historically been a popular method of mileage reimbursement. Unfortunately, though, this model just isn’t flexible enough to reimburse all employees fairly. For example, giving each employee $300 a month to cover all business travel expenses might initially seem like the easiest approach; but by not calculating individualized, location-specific reimbursements, companies usually end up either underpaying or overpaying workers.
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Vehicle Reimbursement: Selecting the Right Program
October 5, 2015
So you’ve decided to reimburse your employees for driving their personal vehicles for work. Problem solved, right? Not so fast. Vehicle reimbursement has many advantages, but those benefits can be overshadowed by unnecessary costs if you implement the wrong program. Many companies lose thousands of dollars per employee each year by using flat car allowances,…
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With Motus, accurately capturing business mileage has never been faster or easier. Gone are the days of hand-written paper mileage logs and time-consuming expense reports. Please note, use of this product requires a Motus app subscription.
