Car Allowance

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.

  • Switching to an allowance from company car program? Your company has a fleet. You’re getting sick of personal use piling up and cars not being treated well. Maybe you have some doubts about accounting for those vehicle expenses yourself. Or have a suspicion that company cars for your sales reps aren’t the lowest cost option. When looking for fleet…

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  • What makes a car allowance taxable income? Across industries, car allowances have long been a favorite vehicle program. The reasoning is as simple as the program itself: a car allowance is easy to implement and upkeep. Which, for a company with hundreds of mobile employees, or just a handful, may seem like the way to…

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  • Does an accountable allowance vehicle program meet your mobile workforce’s needs? When it comes to vehicle programs, your company has options. Most companies don’t know what those options are outside of what they already have. But within those options, there are more options. For example, a mileage reimbursement program, or a Cents-Per-Mile (CPM) program, can…

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  • Hybrid Vehicle Programs 101   What is a hybrid vehicle program? Simply put – a hybrid vehicle program is a program that brings all of your mobile employees together under one consistent system of record. It’s designed to enhance visibility and control expenses. How? By effectively prescribing mobile employees to the appropriate reimbursement method, best…

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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 when…

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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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  • 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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