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...

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....

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,...

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...

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...

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...

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 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...

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 With new mobile technology, spreadsheet mileage logs are becoming outdated in favor of...

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...

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...

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...

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...

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,...

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...

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...

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...

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...

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 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.

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...

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.

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.

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:

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.

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...

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.

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...

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...

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

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...

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

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. 

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.

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...

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.

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.

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...

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...

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

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...

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...

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...

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...

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

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...

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

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...

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...

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...

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...

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...

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...

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.

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...

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...

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,...

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.

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...

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...

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

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...

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...

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.

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

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

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

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...

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

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...

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...

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...

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...

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...

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

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

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

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.   

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...

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...

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

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

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...

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...