Driving you forward

Why You Need to See Your Employees' Auto Insurance Policy Declarations

by mBurse Team Member, on Feb 24, 2020 7:15:00 AM

Proof of employees' auto insurance will not be enough to protect your business in the event of an accident. It is vital to also keep records of each employee's insurance policy declarations pages....

Are You Losing 40% of Your Company Vehicle Allowance to Taxes?

by mBurse Team Member, on Feb 17, 2020 7:15:00 AM

If your company pays a monthly vehicle stipend, 40% or more of that money could go to federal and state coffers this tax season. With tax returns on everyone's minds, now is a great time to review...

Why Your Company Needs an Employee Driver Safety Program

by mBurse Team Member, on Feb 10, 2020 7:00:00 AM

In 2020 do you plan to run a motor vehicle record (MVR) check on all your employee drivers? If not, you should. You can reduce your company’s risk profile by instituting annual or bi-annual MVR...

Can You Deduct Business Mileage on Your Taxes?

by mBurse Team Member, on Feb 3, 2020 7:14:00 AM

It's tax season again and time to review the IRS rules regarding business mileage deductions. The 2017 tax reform made major changes to the rules around miscellaneous tax deductions that could...

Does Your Car Allowance Violate California's Reimbursement Laws?

by mBurse Team Member, on Jan 27, 2020 7:15:00 AM

If you pay a car allowance to employees working in the state of California, be aware that these workers face a unique set of conditions. Between strict labor laws and disproportionately high...

California Assembly Bill 5 and Vehicle Reimbursements

by mBurse Team Member, on Jan 13, 2020 7:30:00 AM

On January 1, 2020, a new law went into effect in California that re-classifies many independent contractors as employees. California Assembly Bill 5 in combination with CA Labor Code 2802 could...

The 2020 IRS Mileage Rate and Business Vehicle Reimbursements

by mBurse Team Member, on Jan 1, 2020 7:15:00 AM

The IRS has just released the 2020 standard business mileage rate. Whether your company uses the IRS for reimbursements or is considering it, here's what you need to know to be prepared for 2020.

Has Your Company Set Its 2020 Car Allowance or Mileage Rate?

by mBurse Team Member, on Dec 30, 2019 7:00:00 AM

As 2020 begins, it's time to review your company vehicle reimbursement program and make sure that your rate is fair, competitive, and cost-effective. Recent changes in the tax code and state labor...

Benchmark for 2020 with our 2019 Car Allowance Survey Results

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

Our annual survey results have arrived, and they reveal negative impacts of the tax reform on employees who receive a car allowance or vehicle reimbursement. As a result, 9 out of 10 companies...

3 Ways to Manage Your Company Gas Card Costs in 2020

by mBurse Team Member, on Dec 9, 2019 7:00:00 AM

If your company gives a gas card to employees or reimburses their fuel costs, it can be a challenge to control these costs. Paying for employees' fuel typically supplements a car allowance, but it...

Will Your Vehicle Allowance Be Competitive in 2020?

by mBurse Team Member, on Dec 2, 2019 8:15:00 AM

Market forces are raising the standards for companies that pay a car allowance or vehicle reimbursement. The loss of a popular tax deduction has left employees who drive a personal vehicle for...

What Grade Would You Give Your Company Car Allowance?

by mBurse Team Member, on Nov 11, 2019 11:59:00 AM

As 2019 concludes, it is imperative that businesses paying a car allowance or vehicle reimbursement audit their policy for 2020. As our 2019 Car Allowance Survey reveals, tax reform took a toll on...

Car Allowance Plus Mileage vs. FAVR Reimbursement

by mBurse Team Member, on Nov 4, 2019 3:20:51 PM

Sometimes a monthly car allowance isn't enough to offset employee vehicle costs, so the company adds a mileage reimbursement. A similar approach is called FAVR – fixed and variable rate...

3 Self-Guided Steps to Improve Your Car Allowance or Reimbursement for 2020

by mBurse Team Member, on Oct 21, 2019 6:16:00 AM

The 2019 tax-filing season exposed inadequate car allowances and vehicle reimbursements nationwide. This was the first time mobile employees could not write off unreimbursed business expenses. Now...

California Gas Prices, Labor Laws, and Your Vehicle Reimbursement

by mBurse Team Member, on Oct 7, 2019 7:00:00 AM

It's common knowledge that California has the highest gas prices in America. But as prices reach a five-year high, employers may find themselves on a collision course with California's stringent...

How to Explain Your Mileage Rate to Employees

by mBurse Team Member, on Oct 2, 2019 10:32:11 AM

Mileage reimbursements face scrutiny when employees discover that their rate isn’t covering their costs, even if you are using the IRS mileage rate. How will you answer when an employee asks you...

How an Employee's Car Insurance Coverage Can Hurt Your Business

by mBurse Team Member, on Sep 23, 2019 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...

Employers Are 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...

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...

2020 Mileage Reimbursement: How to Set the Proper Rate

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

The 2018 tax reform made it crucial to pay the proper mileage reimbursement to employees. Employees cannot deduct unreimbursed business expenses until 2025. They now expect employers to pay a...

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

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 2020

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

In the spring of 2019, taxpayers filed under the new tax code for the first time. Changes in the rules governing miscellaneous deductions affected 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.

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.

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.

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

Is a Car Mileage Allowance Taxable?

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 changes in the tax code.

Why Your $500 Car Allowance Violates 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...

Three Ways the New Tax Code Exposes Taxable Car Allowances

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

Congress passed a massive tax reform for tax years 2018-2025. 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...

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.

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...

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.

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...

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

The state of California has the strictest labor laws in the country when it comes to auto allowances and vehicle reimbursements. Whether your company pays a monthly allowance or the IRS mileage...

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

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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