In 2022 it will be as important as ever to offer a competitive car allowance or vehicle reimbursement. But with rising vehicle costs, this could get expensive. Auditing your policies can help you...

If your company gives a gas card to employees or reimburses their fuel costs, it can be a challenge to control these costs. Last week we looked at five reasons to consider not directly paying for...

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 IRS will soon release the 2022 standard business mileage rate. Regardless of the amount of the newly announced rate, businesses that use the IRS mileage rate for reimbursements will run into...

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...

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...

If you can’t quantify what your car allowance covers, you could be in trouble. Vehicle costs have risen significantly, and employees no longer have the ability to deduct business mileage on their...

As the prices of new and used vehicles continue to rise and gas prices remain historically high, businesses are increasingly forced to ask whether the company car is still worth it.

As the fourth quarter begins, we near the fourth year in which employees who receive a car allowance cannot write off mileage on their tax returns. This reality combined with rising gas prices,...

The fixed and variable rate (FAVR) reimbursement provides a tax-free, defensible, and cost-effective tool to offset employee vehicle expenses. Leveraging data to reimburse auto expenses, FAVR is...

From time to time, we like to feature a question we have received. This time, the question is about whether a fixed and variable rate reimbursement (aka FAVR car allowance) is superior to a...

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...

Company car allowances policies are often some of the most overlooked policies in the organization. But these policies are more important than many people realize.

In 2017 Congress passed a massive tax reform for the years 2018-2025. Under the rules of these tax years, paying a taxable car allowance just isn't worth it.

If your employees travel for business in their personal vehicles, and they receive a flat car allowance, you are probably violating California’s labor code. CA Labor Code, Section 2802(a),...

It’s an HR manager’s worst nightmare. While working, an employee causes an auto accident with injuries. And the employee was uninsured. This is why businesses should mandate and verify employee...

If an employee causes a car accident while on the job, the company will likely face some liability. Vehicular accidents are one of the leading causes of work-related injuries and fatalities. Let's...

Without question, a company car is a huge perk. Employees get to drive a nice vehicle without all the expense and liability. The company can attract top talent while projecting a uniformly classy...

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

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...

If you provide a vehicle reimbursement to employees working in Illinois, gas tax increases could put your organization in a bind. The IRS business mileage rate cannot guarantee compliance with the...

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...

A standardized mileage rate, such as the IRS rate, and employee-reported mileage both can make it hard to control costs while supporting employees sufficiently – here are three best practices to...

In the post-pandemic, post-tax reform economy, it is more important than ever to offer a flexible car reimbursement. The secret is to start with a standardized vehicle, not a standardized rate....

Paying an equal car allowance or mileage rate has long been the norm. But today's economy requires a different approach. It all starts with a standardized vehicle.

Your employees’ car insurance can cost the whole company if the coverage is too low. All it takes is a single car accident. You can protect your organization by following these guidelines for...

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.

Your standard auto allowance plan probably isn’t IRS-compliant. In this Q&A we'll tell you why, and how to create an accountable auto allowance plan.

For many industries 2020 was a year of loss, forcing them to re-evaluate priorities and figure out how to survive. COVID-19 is now forcing many organizations to decide whether to continue offering...

Every organization with employees who operate a vehicle on the job should have a vehicle safety policy. Addressing distracted driving is a key way to strengthen your organization's policy and...

When it comes to labor law, California has set the bar high when it comes to preventing employers from passing along expenses to employees. Here's a quick overview of CA Labor Code Section 2802...

Without even knowing it, your company’s car allowance or mileage reimbursement may be violating state labor laws like California Labor Code, Section 2802. It is important to take the time to...

The recent spikes in gas prices may rise further. A couple of weeks ago, we discussed how prices at the pump can impact car reimbursements. Today let's take a step back and look at the bigger...

You may have noticed that gas prices are rising again after months of relatively low costs at the pump. Understanding how this will affect employees who operate a vehicle for your company is...

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...

A company car is one of the most attractive benefits an employee can receive. But the IRS tax rules surrounding business vs. personal use of a company vehicle can be a challenge to administer.

It's tax season, and filers will again be reminded that they cannot deduct miscellaneous business expenses if they are an employee. This means no mileage deduction for workers who receive a car...

The fix and variable rate allowance (FAVR) provides a tax-free, defensible, and cost-effective tool to offset employee vehicle expenses.

Company car allowances policies are often some of the most overlooked policies in the organization. But these policies are more important than you might think.

A company car is an amazing perk to an employee. But it is a high expense for an employer, and an underutilized tool during the pandemic, pushing some companies to look for alternatives. Here are...

When deciding on a mileage reimbursement rate, many companies look for guidance to the published standard mileage rates from the IRS. But the question of whether to pay that exact rate to...

Each year, the IRS updates its rules and guidelines for non-taxable, accountable vehicle reimbursements. If your organization uses or is considering a FAVR car allowance, here's what you should...

As we head into 2021, many organizations are taking stock after a challenging and confusing 2020. Now is the time to re-evaluate your current car allowance and re-tool with a flexible and...

As your business evaluates business vehicle plan options for 2021, adopting a fixed and variable rate reimbursement, also known as a FAVR car allowance, should be high on your list. Find out why...

A company provided vehicle has always been a huge perk. However, recent trends have made it more expensive to maintain a company fleet. Is switching to a car allowance or vehicle reimbursement a...

The year 2020 brought the COVID-19 pandemic and lots of economic disruption. As we head into 2021 opportunities abound to provide a more competitive car allowance, providing stability in the midst...

2020 has been a rough year for everyone. As you head into 2021, your business may be weighing whether to pay a car allowance or mileage reimbursement to employees. Our answer to this question may...

California's ballot initiative, Proposition 22, passed by a 58 - 42 margin. What does this mean for other states?

[UPDATED] We now know what the IRS standard business mileage rate will be in 2021. Here are steps your organization can take to stay responsive to these changes.

GPS mileage apps are quickly becoming the preferred way for both businesses and independent contractors to keep track of mileage for work and tax purposes. Along with these apps come privacy...

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...

The 2019 and 2020 tax-filing seasons exposed inadequate car allowances and vehicle reimbursements. These were the first two years mobile employees could not write off unreimbursed business...

While there's no federal law requiring employers to reimburse their employees' business vehicle expenses, many companies choose to do so – and for good reasons. Let's explore ways to determine...

We often get asked by company managers or employees who drive for work how much auto insurance they should carry. Different states have different required minimum coverages, but all of these fall...

Most businesses experience both fixed expenses and variable expenses. Knowing the difference is important, especially if your organization reimburses employees for their business vehicle expenses.

As July ends and August begins, it is clear that the United States faces a long and complicated road through the COVID-19 pandemic. Vehicle reimbursement policies should be revised to reflect the...

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

The car allowance is one of the most overlooked business tools within most organizations. It seems simple enough and easy to maintain. But the simplicity of a standard monthly payment carries...

Car allowances remain one of the most popular ways for employers to offset their employees' business vehicle expenses. However, few organizations take time to calculate a fair amount based on...

As a result of COVID-19, many employers face changing circumstances for how and where employees fulfill their job responsibilities. In states that require full reimbursement of employees for...

You company's car allowance covers a wide range of employee vehicle expenses. If it is not high enough, the allowance could impact your employee retention rate. If you have not adjusted the...

When an employee drives a personal vehicle as part of their job, the company typically reimburses the driver for the cost of the business use of the vehicle. Many employers pay a cents-per-mile...

If your company uses the IRS business mileage rate to reimburse employees, you are using the wrong tool for the task. This vehicle reimbursement approach has significant shortcomings in a normal...

Though businesses across the country have reopened, many are still keeping their workers at home. For these organizations, it can seem reasonable to suspend vehicle reimbursement programs, such as...

With most restaurants shifting to take out and delivery over the past two months, many owners face the new challenge of properly reimbursing employees who have converted to delivering food to...

If your organization provides a company vehicle to employees, now is a good time to evaluate the tools you are using to support this program. Adopting effective personal use chargeback procedures...

With so many Americans working remotely right now, many workers are putting fewer business miles on their vehicles than they did before the COVID-19 pandemic struck. Now is an important time to...

If your organization tracks employees' business mileage for tax purposes or reimbursements, it can be a tedious process. With the new generation of mileage trackers like our mobile app mLog,...

With the COVID-19 pandemic forcing the majority of Americans to stay home, much of our workforce has gone remote. Under some state labor codes, that could require employers to take on additional...

With the COVID-19 pandemic hitting the United States, it's no longer "business as usual." As painful economic losses mount and more people work from home, we are entering an unprecedented phase....

The 2019 tax season placed taxable car allowances under increased scrutiny because employees could no longer deduct business mileage to offset their taxes. Businesses are now turning to...

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....

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...

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

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...

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...

[Updated] 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...

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...

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...

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...

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 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...

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...

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...

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...

Your employer may provide you with a car allowance or a mileage 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.

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...

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.