Driving you forward

Employers Questioning the IRS Mileage Rate as a Reimbursement

by mBurse Team Member, on Sep 16, 2019 7:00:00 AM

For companies that pay a vehicle reimbursement to employees, the IRS mileage rate has often been viewed as the gold standard. However, the mileage rate's lack of transparency is causing employers...

How the IRS Mileage Rate Violates CA Labor Code 2802(a)

by mBurse Team Member, on Sep 9, 2019 9:54:08 AM

It is often standard practice to reimburse vehicle expenses using the IRS business mileage rate. In the past, the IRS rate was often sufficient to comply even with California's strict labor laws....

2019 Guide to FAVR reimbursements

by mBurse Team Member, on Sep 4, 2019 3:22:36 PM

In 2019 more and more businesses are finding that their standard car allowance or mileage rate won't cut it under the new tax code. It's time to explore the fixed and variable rate reimbursement,...

Tags: FAVR

3 Reasons to Rethink Providing a Fuel Card or Reimbursement

by mBurse Team Member, on Aug 24, 2019 12:08:22 PM

Many organizations that pay a car allowance also provide employees with a gas card or fuel reimbursement. Offsetting your employees' fuel costs can be a big mistake, however, because you lose the...

Negligent Entrustment Lawsuit Hits the Dallas Cowboys

by mBurse Team Member, on Aug 19, 2019 10:23:53 AM

The Dallas Cowboys organization has been named a defendant in a lawsuit from a car accident involving its star running back, Ezekiel Elliott. Now Elliott's employer may be liable for significant...

The Gas Tax and CA Labor Code 2802 - What to Do about It

by mBurse Team Member, on Aug 13, 2019 2:41:20 PM

As we reported in part 1 of this blog, the state of California raised its gas tax effective July 1, leaving its motorists paying $1 more per gallon than the national average. This creates...

California Hiked the Gas Tax - Watch Out for Labor Code Violations

by mBurse Team Member, on Jul 30, 2019 9:01:45 AM

It's official – as of July 1, 2019, California drivers will be buying gas at $1 above the national average per gallon. This recent gas tax increase will create new challenges for employers under...

Mileage Reimbursement or FAVR - What's the Best Approach?

by mBurse Team Member, on Jul 22, 2019 10:05:53 AM

Mileage reimbursements for employees are pretty standard in many industries. The approach is straightforward and seems pretty fair. But the IRS-approved FAVR mileage reimbursement is being touted...

What's the Best Way to Track Business Mileage?

by mBurse Team Member, on Jul 18, 2019 9:58:44 AM

If you track business mileage for tax purposes or a mileage reimbursement, it can be a tedious process. With new mobile technology, spreadsheet mileage logs are becoming outdated in favor of...

How Do Mileage Reimbursements Work?

by mBurse Team Member, on Jul 9, 2019 5:12:00 AM

If you drive a personal vehicle for work, your employer may pay a mileage rate to offset the costs you incur. Once you know the mileage rate, it's easy to calculate the reimbursement. But is that...

2019 Car Allowance Policy: How to Set the Proper Amount

by mBurse Team Member, on Jul 1, 2019 9:56:25 AM

In the wake of the 2018 tax reform businesses MUST fully reimburse employees who use personal vehicles for work. The changes in tax code have eliminated the federal deduction for unreimbursed...

Benchmark Your Car Allowance to See How You Measure Up

by mBurse Team Member, on Jun 25, 2019 10:55:49 AM

Over time, an auto allowance can resemble a snowball rolling down the side of a mountain. It starts small and simple, but leads to far-reaching – and sometimes destructive – consequences. That's...

Fuel Card vs FAVR - What is better?

by mBurse Team Member, on Jun 17, 2019 7:04:00 AM

As vehicle expenses increase, employees may complain that their car allowance isn't enough. And now that they can no longer deduct mileage on their taxes, these workers are feeling the pinch. Some...

How to Explain Your Car Allowance Amount to Employees

by mBurse Team Member, on Jun 10, 2019 8:36:59 AM

If you can’t articulate what your car allowance covers, you could be in trouble. A popular tax write-off is gone for the next six years—the business expense deduction. Unable to deduct mileage,...

How Does a Car Allowance Work?

by mBurse Team Member, on Jun 3, 2019 3:25:41 PM

Employees who drive a personal vehicle for work often receive a vehicle allowance to offset costs. Most people receive the allowance as a monthly lump sum. But does that monthly payment cover all...

Car Allowance vs. FAVR - Which Is Better?

by mBurse Team Member, on May 28, 2019 5:12:00 AM

Lately there's been a buzz around FAVR vehicle plans, also known as fixed and variable rate car allowances. Many organizations are wondering whether this would be a better alternative to a...

Should you tax your fuel card?

by mBurse Team Member, on May 20, 2019 6:09:00 AM

Many organizations pay a taxable car allowance only to realize that after taxes the car allowance doesn’t cover employees’ costs. So they add paying for employees’ fuel. But paying for fuel is not...

2019 Mileage Reimbursement: How to Set the Proper Rate

by mBurse Team Member, on May 13, 2019 9:34:15 AM

The 2018 tax reform has made it crucial to pay the proper mileage reimbursement to employees. Employees can no longer deduct unreimbursed business expenses until 2025. They will expect employers...

Mileage Reimbursement vs. Car Allowance - Which Is Better?

by mBurse Team Member, on Apr 25, 2019 11:34:28 AM

Your employer may choose to provide you with a car allowance or a vehicle reimbursement to pay for the business use of your personal vehicle. If your job requires you to use a vehicle to carry out...

Is a Car Allowance Taxable Income?

by mBurse Team Member, on Apr 16, 2019 5:41:00 AM

Is your car allowance taxable? It depends on whether it's an IRS-accountable plan or a non-accountable plan. Let's look at the guidelines.

How FAVR Will Help Your Business

by mBurse Team Member, on Apr 8, 2019 9:59:38 AM

As car allowances have undergone increased scrutiny over the past year, more businesses are learning about the Fixed and Variable Rate (FAVR) reimbursement. This IRS-approved alternative to a...

Tags: FAVR

Is Your Car Allowance Driving Employees Out the Door?

by mBurse Team Member, on Apr 3, 2019 2:08:48 PM

You company's car allowance could be impacting your employee retention rate. If you have not adjusted the allowance amount in awhile, don't be surprised if employee attrition rates have risen.

Why the IRS mileage rate over-reimburses employees

by mBurse Team Member, on Mar 26, 2019 11:00:10 AM

You don’t have to overpay to reimburse your employees—unless, that is, you’re paying the IRS standard mileage rate. With ease comes a price, but there are alternatives.

Is a Car Allowance or Mileage Reimbursement Taxable Income?

by mBurse Team Member, on Mar 20, 2019 7:49:54 AM

Both employers and employees often ask us whether their car allowance or mileage reimbursement should be taxed. Here’s a typical question and how we answer it:

How the New Illinois Labor Law Will Impact Your Business

by mBurse Team Member, on Mar 11, 2019 6:02:00 AM

The Illinois Wage Payment and Collection Act was amended effective January 1, 2019. This law places new requirements on reimbursements of employees. Here’s everything you need to know.

Tags: Labor Codes

How to Comply with Expense Indemnification Labor Codes

by mBurse Team Member, on Mar 4, 2019 12:17:30 PM

Illinois recently joined a growing number of states with expense indemnification labor codes. If your organization pays a car allowance or vehicle reimbursement, here’s how to ensure your...

Tags: Labor Codes

Tax Refunds Are Down. How to Protect Your Organization.

by mBurse Team Member, on Feb 25, 2019 11:18:45 AM

Due to the removal of popular deductions, many taxpayers in 2019 face reduced refunds or no refunds. The impact on your employees may affect your organization in surprising ways.

Tags: Tax Reform

4 Steps to Fix Your Policy for Employee Car Insurance

by mBurse Team Member, on Feb 19, 2019 6:56:00 AM

If you don’t require your mobile employees to carry a certain level of personal car insurance, you should immediately address this problem. Failure to do so will leave the company exposed to...

Why Your Employees' Car Insurance Matters

by mBurse Team Member, on Feb 4, 2019 10:08:00 AM

One out of eight U.S. motorists is uninsured. These drivers pose a threat not only to other drivers but also to their employers, making employee car insurance a serious matter that many companies...

Mileage Reimbursements as Compensation

by mBurse Team Member, on Jan 24, 2019 11:38:37 AM

Why Your Employees View Mileage Reimbursement as Compensation—and Why That’s a Problem 

Top 5 Reasons to Revisit Your Car Allowance in 2019

by mBurse Team Member, on Jan 7, 2019 11:40:02 AM

This spring, taxpayers will file under the new tax code for the first time. Changes in the rules governing miscellaneous deductions will affect thousands of workers who receive a taxable car...

5 Reasons NOT to Give Employees a Fuel Card

by mBurse Team Member, on Jan 2, 2019 6:25:00 AM

If your company pays for its employees’ gas, you’ve bought yourself a costly problem. To avoid a fuel card or fuel reimbursement disaster, it’s time to start exploring other options.

The 2018 Car Allowance Survey Results

by mBurse Team Member, on Dec 20, 2018 8:50:42 AM

The results are in: most companies ignore best practices. Outmoded car allowances set companies up for expensive fixes. Don’t be like the competition.

2019 IRS Mileage Rate Has INCREASED to 58 Cents-Per-Mile

by mBurse Team Member, on Dec 14, 2018 5:18:00 AM

The IRS just issued the new mileage rates for 2019. The 2019 mileage rate has increased from 54.5 cents per mile to the new rate of 58 cents-per-mile. 

How to Pay a Car Allowance or Reimbursement without Violating Labor Codes

by mBurse Team Member, on Dec 3, 2018 9:56:38 AM

Last week, we discussed the challenges with the tax reform and labor codes in employee-friendly states. Today we’ll discuss the best approach to working through these challenges.

Why Your Car Allowance or Reimbursement Is Violating Labor Codes

by mBurse Team Member, on Nov 26, 2018 6:57:00 AM

Without even knowing it, your company’s car allowance or mileage reimbursement may be violating state labor codes. It’s important to take the time to educate yourself and avoid costly fines or...

Two Ways to Control Your Mileage Reimbursement Costs

by mBurse Team Member, on Nov 12, 2018 10:11:00 AM

A standardized mileage rate, such as the IRS rate, and employee-reported mileage both can make it hard to control costs—here’s how to fix the problem.

Surviving the Tax Code-Labor Code Tug of War

by mBurse Team Member, on Nov 5, 2018 6:55:00 AM

Almost one year ago, Congress enacted a sweeping tax reform. But the new tax code may cause your company to run afoul of state labor codes.

Top 3 Reasons NOT to Use the IRS Mileage Rate for Auto Reimbursements

by mBurse Team Member, on Oct 29, 2018 8:04:00 AM

The IRS mileage rate was designed to be a tax deduction tool for individual taxpayers, but it has become the standard rate for business vehicle reimbursements. The results are costlier than you...

What Is the Fixed and Variable Rate Reimbursement (FAVR)?

by mBurse Team Member, on Oct 22, 2018 8:43:12 AM

The Fixed and Variable Rate (FAVR) reimbursement leverages data to reimburse more precisely and equitably than any other vehicle reimbursement plan, providing a tax-free, defensible, and...

Tags: FAVR

Announcing the 2019 Mileage Tracking Best Practice Checklist

by mBurse Team Member, on Oct 15, 2018 7:34:00 AM

Your mileage reimbursements are only as accurate as your mileage tracking. Ensure that you’re equipped with the best mileage tracker available.

Re-evaluate Your Vehicle Allowance or Reimbursement before 2019

by mBurse Team Member, on Sep 27, 2018 11:04:16 AM

In December 2017, when Congress passed the biggest tax reform in 30 years, they effectively forced companies to reshape vehicle allowance and reimbursement policies over the next seven years. Even...

Announcing Our New Guide: Everything You Need to Know about Mileage Logs in the 21st Century

by mBurse Team Member, on Jul 23, 2018 6:19:00 AM

If you have employees that drive as a part of their job, there’s a good chance they track their mileage. Whether for a reimbursement or a tax deduction, tracking mileage to substantiate the...

What We Mean When We Say, “Equal Is Not Equitable”

by mBurse Team Member, on Jun 19, 2018 9:50:41 AM

At mBurse, we constantly say, “Equal is not equitable—it’s just equal.” This statement has almost become a cliché in the office, but this statement is true. The reason is simple: giving equal...

Mobile Employees and Risk: A “Crash” Course

by mBurse Team Member, on Jun 4, 2018 7:28:00 AM
Our latest eBook—on mobile employees and risk—is ready to download
Tags: Risk

3 Tactics to Manage Your Fuel Card or Reimbursement Costs in 2018

by mBurse Team Member, on May 29, 2018 6:16:00 AM

Gas prices are on the rise again, with no end in sight. The summer driving season is upon us, and prices have risen to 2014 levels with the potential to rise higher. The current crude oil price of...

Got Employees Who Drive for Work? Find Out How to Protect Your Company

by mBurse Team Member, on May 15, 2018 8:12:45 AM

If your employees hit the road routinely on behalf of the company, you’re contending with a phenomenon called mobile employee risk.

Tags: Risk

Vicarious Liability, Respondeat Superior, and Employee Auto Accidents

by mBurse Team Member, on Apr 24, 2018 12:16:14 PM

If an employee causes a car accident while on the job, the company could end up paying. It's all because of a legal concept called respondeat superior, or vicarious liability. Let's unpack these...

Tags: Risk

How the Tax Reform Affects Your Company's Car Mileage Allowance

by mBurse Team Member, on Apr 10, 2018 10:38:54 AM

Paying a car allowance with mileage substantiation? The time is now to re-evaluate your policy as a result of the new tax code.

Why the Tax Reform Could Hurt Companies with Mobile Employees

by mBurse Team Member, on Apr 3, 2018 8:24:48 AM

With the new tax code in place for 2018, now is probably a good time to dust off your car allowance or vehicle reimbursement policy. The tax reform or Tax Cuts and Jobs Act (TCJA) lowers...

Why your $500 car allowance is violating CA Labor Code 2802(a)

by mBurse Team Member, on Mar 19, 2018 7:36:55 AM

If you have employees that travel for business in their personal vehicles, and you pay them a flat car allowance, you are probably violating California’s labor code. With America’s workforce...

Why the IRS Mileage Rate is Terrible for Businesses

by mBurse Team Member, on Mar 12, 2018 3:27:12 PM

If your company uses the IRS business mileage rate to reimburse employees, you are using the wrong tool for the task. This leaves your company exposed to uncontrollable costs and unnecessary...

Want to Download a Spreadsheet Mileage Log? Try a Mileage App Instead

by mBurse Team Member, on Mar 6, 2018 2:42:14 PM

Businesses across the country rely on employee-reported mileage to run their vehicle reimbursement programs. But reporting mileage on a spreadsheet log has a fatal flaw: "fat fingers." Before you...

FAVR vs the IRS Mileage Rate - What's Best for Your Business?

by mBurse Team Member, on Feb 20, 2018 5:42:00 AM

From time to time, we like to feature a question we have received. This week, the question revolves around the difference between the Fixed and Variable Rate (FAVR) reimbursement and the company...

Why You Should Benchmark Your Car Allowance

by mBurse Team Member, on Feb 13, 2018 9:07:24 AM

According to AAA, the average cost of owning and operating a new motor vehicle in 2017 was $8,469. But it’s not actually that simple. If you drove a small sedan, you may have spent closer to...

Three Ways the New Tax Bill Exposes Taxable Car Allowances

by mBurse Team Member, on Feb 5, 2018 6:20:00 AM

Congress passed a massive tax reform for the year 2018. If your company pays a taxable car allowance, it's time to consider a non-taxable plan.

3 Tools to Make Your Car Allowance or Reimbursement More Fair

by mBurse Team Member, on Jan 29, 2018 6:04:00 AM

Paying the same car allowance or mileage rate to all mobile employees is like serving the same amount of food to the U.S. Olympic swim team as to the golf team. Most golfers won’t need much more...

Your Car Allowance Should be Defined By Data

by mBurse Team Member, on Jan 22, 2018 7:03:00 AM

What is your car allowance amount based on? If it’s not based on data, you could be in trouble. You may be overpaying or underpaying. You may face increased attrition rates or productivity losses...

How to Create a Robust, Mature Car Allowance Policy

by mBurse Team Member, on Jan 15, 2018 5:26:00 AM

Our 2017 car allowance survey yielded a surprising result: 77% of companies surveyed had not reviewed or change their car allowance policy in the last ten years. During the last ten years,...

4 Signs Your Car Allowance Isn’t Competitive—and 4 Ways to Fix It

by mBurse Team Member, on Dec 27, 2017 7:14:00 AM

What's an industry standard car allowance? Turns out, most companies ignore their employee car allowance when they could instead turn it into a business tool to attract and retain talent.

How to Make Motor Vehicle Record Checks as Effective as Possible

by mBurse Team Member, on Dec 19, 2017 6:28:00 AM

As you enter 2018 do you plan to run a motor vehicle record (MVR) check on all your mobile employees? If not, you should. You can reduce your company’s risk profile and save a lot of money in the...

Why 2018 Insurance Rates Should Impact Your Car Allowance Policy

by mBurse Team Member, on Dec 4, 2017 7:08:00 AM

At the end of 2017, employment is up and gas prices are down. Those trends have put more drivers on the road, but more drivers also means more accidents. And with a rise in accidents comes a rise...

Why Your Business Mileage Tracker Is Outdated and Costly

by mBurse Team Member, on Nov 15, 2017 8:45:00 AM

Many people track their business mileage, whether for tax purposes, for a mileage reimbursement, or to keep a car allowance tax free. For companies that require employees to calculate mileage, an...

Three Questions You Can’t Afford NOT to Ask about Your Car Allowance Program

by mBurse Team Member, on Oct 24, 2017 7:08:00 AM

Three Questions You Can’t Afford NOT to Ask about Your Car Allowance Program

How to Tell If Your Excel Mileage Log Is Broken

by mBurse Team Member, on Oct 13, 2017 11:40:00 AM

Microsoft Excel is a popular choice for logging mileage, whether for tax purposes or to reimburse employees for vehicle costs. But using a spreadsheet to track mileage is a flawed procedure that...

Enhance your Expense Management System with a Mileage Log App

by mBurse Team Member, on Sep 20, 2017 10:01:00 AM

If your company has invested in an expense management system such as Concur, Expensify, or Certify, you have probably found it to be a great decision. However, if logging business mileage requires...

Why Your Fuel Card Program Needs a Better Mileage Log

by mBurse Team Member, on Sep 14, 2017 1:02:00 PM

If your company provides a car allowance and has added either a fuel card or fuel reimbursement, it's going to cost you if you don't track mileage properly. Here’s what you need to know.

Paying an Equal Car Allowance/Mileage Rate? One Size Does Not Fit All

by mBurse Team Member, on Sep 5, 2017 11:18:00 AM

When It Comes to Car Allowances and Mileage Rates, One Size Does Not Fit All

GPS mileage tracking: Invasion of privacy or useful business tool?

by mBurse Team Member, on Aug 31, 2017 7:20:00 AM

GPS Mileage Apps: Helpful Business Tools or Invasions of Privacy?

Three Things about Fuel Cards and Reimbursements You Must Know

by mBurse Team Member, on Aug 28, 2017 7:07:00 AM

Thinking about adding a fuel card or fuel reimbursement to your car allowance? Here’s what you need to know.

2017 Survey Results: Car Allowances Are Overlooked and Underutilized

by mBurse Team Member, on Aug 21, 2017 10:03:00 AM

If you knew a tool existed that could increase employee productivity, create an atmosphere of fairness, eliminate tax waste, and assist with talent attraction and retention—would you want that...

Guide to Mobile Employees Car Insurance

by mBurse Team Member, on Aug 14, 2017 8:04:00 AM

Don’t Risk an Accident: A Guide to Mobile Employee Car Insurance

Tags: Risk

Guidelines to Keep Your Car Allowance Accountable, or Non-Taxed

by mBurse Team Member, on Aug 10, 2017 7:30:00 AM

A car allowance is the simplest way to offset an employee’s cost of operating a personal vehicle for business use. Many organizations pay out the allowance every pay period as taxable...

What you need to know about negligent entrustment

by mBurse Team Member, on Aug 7, 2017 12:04:00 AM

Screening new hires is key to any risk management program. It’s the only way for organizations to ensure that they’re hiring honest, reliable employees. Any company hiring employees whose job...

How mobile employees car insurance dictates your risk

by mBurse Team Member, on Jul 31, 2017 9:05:00 AM

If your company has employees who drive as part of their job, your company faces immense risk. According to OSHA, a motor vehicle crash occurs every 5 seconds, a crash-related injury occurs every...

Why Travel Blocking Should be a Priority for your Business

by mBurse Team Member, on Jul 27, 2017 7:57:00 AM

Everyone is looking for ways to “do more with less.” Becoming more efficient and productive means establishing priorities and setting aside specific times to tackle each one. “Blocking” is a term...

3 Steps To Reduce Company Car Costs

by mBurse Team Member, on Jul 25, 2017 7:51:00 AM

Without question, a company car is perceived as a huge perk to an employee. They get to drive a nice new vehicle without all the expense and liability. For a brand-conscious company that wants to...

Is Your Car Allowance Accountable or Non-taxable?

by mBurse Team Member, on Jul 19, 2017 9:37:00 AM

Your flat auto allowance plan probably isn’t IRS-compliant. We'll tell you why.

The Ultimate California Labor Code 2802(a) Cheat Sheet

by mBurse Team Member, on Jul 17, 2017 7:22:00 AM

Why Your Auto Allowance Policy May Violate CA Labor Code 2802(a)

Employee Auto Insurance: Is Your Business Protected?

by mBurse Team Member, on Jul 13, 2017 1:07:00 PM

It's important to protect your business by requiring and verifying employee auto insurance coverage. Here's why—and how to do it.

Tags: Risk

The IRS Mileage Rate Is for Tax Deductions, Not Reimbursements

by mBurse Team Member, on Jul 10, 2017 7:17:00 AM

The IRS mileage rate is a tax tool, not a business reimbursement plan. It creates inequities between employee reimbursements and undermines a company's ability to control costs.   

3 Steps to a Less Risky Auto Allowance Policy

by mBurse Team Member, on Jul 7, 2017 4:43:00 PM

America’s increasingly mobile workforce has increased the importance of robust auto allowance and vehicle reimbursement policies. Mobile employees often travel 500+ miles a month. More miles means...

Review Your Employees' Car Allowance Annually—Here's Why

by mBurse Team Member, on Jul 5, 2017 7:56:00 AM

What is a fair car allowance amount? It's whatever amount sufficiently covers an employee's costs to drive a personal vehicle for your company. To achieve a fair policy, you need to institute an...

How Your Personal Use Chargeback Policy/Tools are Killing Your Costs

by mBurse Team Member, on Jun 29, 2017 5:12:00 AM

Providing company cars: It’s time to check your personal use and chargeback policies

Tags: Company Cars

California Labor Code Section 2802: How to Reimburse Auto Expenses Properly

by mBurse Team Member, on Jun 14, 2017 11:20:00 AM

They say don’t mess with Texas, but when it comes to labor law, it's California you have to worry about. 

Why Every Employer Should Pay Attention to Employees’ Car Insurance

by mBurse Team Member, on Jun 12, 2017 11:41:00 AM

Here’s a little-known fact: Your employees’ car insurance can cost the whole company if the coverage is too low. All it takes is a single car accident. In this post, we'll show you how to protect...

Tags: Risk

The True Cost of a Car Allowance

by mBurse Team Member, on Jun 1, 2017 9:58:48 AM

The car allowance is one of the most overlooked business tools within most organizations. It seems simple on the surface. Mobile employees—anyone who uses a vehicle to complete their job—receive a...

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