FAVR

Vehicle programs. Whether you’re in the pizza business, the healthcare space or any of the numerous business services markets, chances are you have one. They’re often so much a part of what your company does, it’s hard to imagine there are different types, or that you might have the wrong one. So what might the…

The 2020 IRS Standard Mileage Rate is $0.575 On December 31, the IRS announced the 2020 IRS standard mileage rate as 57.5 cents. The rate changes from the 2019 rate of 58 cents by a half cent. This is the first time the rate hasn’t increased in the past three years. But what is the…

Key Insights for Companies with Fleets in 2019 Each year, Motus publishes the Mobile Workforce Benchmark Report. It’s our most extensive report, with everything you need to know about the state of vehicle programs today. Looking for key statistics for company car programs, or to compare your own fleet with those of your peers? You’re…

Switching to an allowance from a company car program? Your company has a fleet. You’re getting sick of personal use piling up and employees not treating cars 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….

2018 Vehicle Cost Trends and Your Business It’s well-known that economic forces have a direct impact on businesses. In fact, for businesses with mobile workers, the 2018 Vehicle Capital Costs Trend Report forecasts significant changes for this year’s automotive landscape. So, what does that mean for these companies? It truly depends on the type of…

Mobile workers incur a wide range of expenses as they drive. From fuel and maintenance costs to insurance premiums and depreciation, 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 it…

In the first installment of the HR Hangout, we introduced the fact of HR leaders developing more influence and expertise among other executive leaders of their business. According to a study carried out by Harvard Business Review, Why Chief Human Resources Officers Make Great CEOs, this increased influence has led to a more collaborative environment…

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.

When it comes to mileage reimbursement, there are a few options that employers can choose. Options include: car allowances, the IRS mileage rate, cents-per-mile rates (other than the IRS), and fixed and variable rate (FAVR) programs. The option that many companies choose is the IRS rate because it seems the most standard and the easiest….

Trying to decide the right vehicle program to meet the needs of both your company and your employees? We get it. Choosing whether to reimburse employees for their personal vehicles or provide them with company vehicles isn’t an easy decision. There are a number of unique advantages and challenges to consider with both. To make…