Every year, the IRS releases a set of standard mileage rates for tax deduction purposes. Many businesses use the federal rate for business to reimburse employees for personal vehicles. Here is your...

Offering a competitive car allowance in 2025 may be costly. Auditing your policies can help you boost driver benefits while reducing costs.

As we move into 2025, writing a new car allowance policy is a good way to keep up with changing times. But how do you create a fair and effective policy? This guide will help you navigate the...

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

Every year, the IRS publishes standard mileage rates to determine tax deductions for vehicle use. Organizations and individuals that use vehicles for business purposes should pay close attention to...

A company car is a valuable perk that attracts employees. A car allowance provides flexibility and control. This guide explores the company car vs car allowance debate. It will delve into the pros...

Q & A: Is our auto allowance taxable?

We frequently receive questions about auto allowance policies that could be helpful to other organizations. Here's a great question we received a couple of years...

What kind of mileage reimbursement should employers offer in the Commonwealth of Pennsylvania? State laws give private employers a lot of choice in setting the rate. Many opt for the federal rate set...

The IRS mileage rate was designed to be a tax deduction tool for individual taxpayers. This federal rate is now the norm for business mileage reimbursements. But using the IRS rate has three major...

California, Illinois, and Massachusetts have laws that require reimbursement of employee business expenses. Here's a guide to these laws and how to craft car allowance policies that comply.

Florida mileage reimbursements are not complicated. Many employers use the federal mileage rate. But is this the best rate for every business?

Businesses and employees operating in New York should know the laws that govern mileage reimbursements. The state of New York does not require mileage reimbursement, but competition may demand it.

If workers for your organization receive a mileage reimbursement, it is important to know who can claim mileage on their tax return. The rules for 2024 make clear which workers are eligible for a tax...

With many workers now driving electric vehicles, mileage reimbursements have gotten more complex. What is the electric car mileage reimbursement rate? How does it differ from traditional vehicles?

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

A growing number of states have labor codes that indemnify employees from work-related expenses. If your organization pays a car allowance or mileage reimbursement, here’s how to ensure your...

This guide provides an overview of the mileage reimbursement laws and rates applicable in Washington State. If you employ workers in the state of Washington, this guide will help you ensure...

A mileage reimbursement is not treated as taxable income if you follow the rules. What are the tax rules for mileage reimbursements? Here is your guide to keeping mileage reimbursements free of taxes.

When it comes to understanding vehicle allowances, navigating the intricacies of tax regulations can be daunting. The Internal Revenue Service Publication 463 provides guidance, but it is 60 pages...

Mileage reimbursement is a way to recognize the efforts of employees who use their personal vehicles for work. A lot of confusion surrounds the process of determining mileage rates and reimbursable...

The current IRS rules for business mileage deductions continue until 2026. The Tax Cuts and Jobs Act (2017) removed business expense deductions for employees. These rules continue to affect whether...

Managing a corporate fleet effectively is crucial for businesses that rely on vehicles for their operations. This guide will provide insights into fleet management, mileage tracking, and the...

Businesses and employees operating in the state of Texas should be familiar with laws governing mileage reimbursements. Texas does not have strict reimbursement laws, but competitive businesses pay...

If your organization has workers in Virginia who use a personal vehicle for their jobs, you need to be familiar with applicable laws. While Virginia does not legally require employers to reimburse...

After three years of vehicle price increases and inflation in vehicle-related costs, now is a good time to reevaluate your company fleet. Your organization may benefit from switching some or all...

In a report last year, LinkedIn estimated that the cost of losing an employee often equals 1.5 to 2 times that employee's salary. Here are some ways to calculate that cost and determine whether your...

Not everyone realizes that the IRS treats car allowances as taxable income. If your organization does not withhold taxes on employee car allowances, it's time to start.

It is common for businesses to pay the same car allowance or reimbursement to all employees who operate vehicles. But some organizations offer more individualized reimbursements. Which is the right...

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

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

After tax withholding, many car allowances do not cover employees’ costs. So employers may decide to add a fuel card to help out. However, the IRS places strict rules on how to govern fuel cards and...

Food delivery has become a mainstay since the days of the pandemic. Here is a guide to the obligations and challenges of reimbursing food delivery employees for the use of a personal vehicle.

With so many costs of doing business on the rise, here are six ways to reduce your organization's overall fuel costs.

In times of rising vehicle costs, organizations that pay a car allowance feel pressure to either increase the allowance or to pay directly for fuel. However, there are more cost-effective ways to...

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.

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 and four ways employers can...

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.

You company's car allowance covers a wide range of employee vehicle expenses. If you have not adjusted the allowance amount in the past three years, don't be surprised if employee retention has...

No federal law requires employers to reimburse their employees' business vehicle expenses. But many companies choose to – for good reasons.

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 hidden...

Interest in FAVR vehicle plans, also known as fixed and variable rate car allowances, is on the rise. Many organizations are wondering about this alternative to a standard taxable car allowance....

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

More and more businesses have been choosing to adopt FAVR programs over traditional car allowances, mileage reimbursements, and fleet programs. Here's a brief overview of FAVR car allowances and why...

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, save...

Whether your business operates a fleet of company vehicles, pays a car allowance, or reimburses vehicle costs, today's sky high car insurance rates are playing a role in your budget. Here's how to...

Many sales reps receive a car allowance to cover their vehicle travel costs. By adopting a FAVR car allowance and adding a mileage app, you can turn that monthly payment into a source of productivity.

With inflation continuing to keep prices high, is it time to increase your car allowance? If you have not increased yours in the last three years, the answer is "Yes." But the way to do it might not...

There are dozens of vendors out there advertising mobile apps designed to track business mileage. How do you compare these competing companies to choose the right mileage tracking software for your...

With inflation running high and employees unable to deduct business mileage on their tax returns, businesses are turning to non-taxable car allowances. The best option is the fixed and variable rate...

When an organization pays a car allowance, it is typical to pay the same amount to all employees who drive for the company. But a more equitable approach can immediately improve any organization's...

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...

How do you know if your company vehicle allowance amount is fair to employees? The answer is not to compare it with the average vehicle amount nationwide.

If your business operates in multiple states in New England, it helps to know the different laws that apply to business reimbursements. You want to choose the vehicle reimbursement method that will...

In 2024, the IRS standard mileage rate for businesses may seem like a fair way to reimburse drivers. However, there are many considerations when determining a fair mileage rate for your business.

A vehicle allowance offsets travel expenses for employees who drive a personal vehicle for work. Avoid typical pitfalls by following these three tips for a successful vehicle program.

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. Here's how to obtain the benchmarking data you need.

Calculating a fair vehicle reimbursement amount is not as simple as multiplying a mileage rate by miles driven. This is because paying an equal rate to employees is not equitable.

Every year, when the IRS releases its new standard mileage rates, a new maximum standard automobile cost for FAVR programs is released. The cap for 2024 was increased once again as vehicle costs...

In the state of Massachusetts, most employees who operate a vehicle for work purposes are entitled to reimbursement. This includes business travel expenses outside the normal commute for work. Here's...

Your company's car allowance policy is either helping or hindering your organization's objectives. Here are three ways to make sure your policy is optimized to fit your goals.

Illinois in 2018 joined other states that legally require employers to reimburse employees for the use of a personal vehicle at work. Here is the best way to reimburse these employees and comply with...

Businesses that use the IRS mileage rate to reimburse employees are using the wrong tool for the task. Let's look at three key reasons to avoid mileage reimbursement at the IRS business rate.

California has one of the country's strictest labor codes. Here's how to properly reimburse California employees for the use of a personal vehicle.

If you have not updated your vehicle allowance or reimbursement plan in the last two or three years, your plan has probably not kept up with inflation. Here are some ways to tell.

Paying a mileage rate can be a great way to reimburse employees for the use of their personal vehicles. But it can get very expensive.

In a time of inflation, a taxable car allowance often falls short of employees' vehicle reimbursement needs. Some businesses add a fuel reimbursement. But without proper management, a fuel policy can...

If your company gives a gas card to employees or reimburses their fuel costs, it can be a challenge to control these costs. Here are three strategies to reduce costs by increasing fuel use visibility.

The IRS announced the 2024 business mileage rate, and it has increased for the fourth time in three years. Here's our guide to tax deduction rules, tax-free reimbursements, and cost considerations...

If your organization operates a fleet of company vehicles, now is a good time to evaluate the tools you use to support this program. By adopting the right tools you can reduce your organization's...

For employees who drive a vehicle as part of the job, a mileage reimbursement is a key way to offset expenses. But what does a mileage reimbursement include? How do you know if your mileage rate is...

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

In 2024 take advantage of opportunities to offer a competitive car allowance and provide certainty for valued employees. After two years of rapid inflation, predictability of business reimbursements...

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

A car allowance is a regular payment to employees to offset work expenses associated with a personal vehicle. It is the simplest, easiest way to pay for employee vehicle expenses. But there are a few...

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:

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 and trustworthy...

Many organizations have employees who operate vehicles for business purposes. Some issue company vehicles while others reimburse the use of personal vehicles or pay a car allowance. What happens when...

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

With so much of today's workforce gone mobile, a responsive business vehicle program is a must. The secret is to start with a standardized vehicle, not a standardized rate. This guide explains how.

It pays to outsource the administration of your company car allowance policy. Here are the top ten reasons why.

Sales reps are responsible for bringing business your way and securing long-term relationships with clients. To optimize sales, it is vital to provide a robust, sufficient vehicle reimbursement...

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...

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...

If your employees travel for business in personal vehicles, and receive a car allowance, that allowance may violate California’s labor code. CA Labor Code, Section 2802(a), requires full coverage of...

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.

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 auto...

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 rate,...

When many of your workers are out on the road making sales calls, meeting with clients, or delivering merchandise, managing their productivity is important. But no one wants to be micromanaged or...

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...

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...

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 fix...

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...

When it comes to providing a car allowance or reimbursement to employees, it is important to craft a financially sustainable plan. Here are five ways to achieve accurate reimbursements without cost...

An IRS-approved, tax-free plan, the fixed and variable rate (FAVR) allowance reimburses employee vehicle expenses accurately and equitably. Leveraging data to reimburse auto expenses, FAVR is more...

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.

Policies governing employee vehicle use and reimbursement affect many areas of an organization. The key is to fit these policies to your core objectives while boosting employee satisfaction and...

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

Every HR leader wants to ensure that employees are treated with fairness in compliance with applicable laws. When it comes to vehicle reimbursements, a fair, compliant policy can go a long way to...

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.

For most organizations that employee a mobile workforce, the vehicle reimbursement plan may be viewed through the lens of employee benefits or budgeting. But the tools you use to reimburse drivers...

How do you measure the productivity and efficiency of your mobile workforce? Your organization's mileage log may be an underutilized tool to provide the data necessary to improve productivity and...

Mileage logs are necessary if you pay a mileage reimbursement or fuel reimbursement. The type of mileage log you use can significantly increase or decrease company costs.

As we discussed in our last post, it is vital to base your vehicle reimbursement operating budget on vehicle expense data. This will help your organization control costs. But there are a few key...

The travel and expense (T & E) category of an operations budget is one of the toughest to control. One easily overlooked subcategory is reimbursement for vehicle travel. Performing a review of this...

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 know.

The story of 2022 heading into 2023 is inflation. Everyone is experiencing higher costs. One way for your business to reduce costs is to switch from paying a standard car allowance to a tax-free car...

A company car is an amazing perk to an employee. But it is a high expense for an employer. With the prices of new vehicles at historic highs, 2023 is a good time to consider alternatives. Here are...

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

2022 has been an expensive year for most businesses. As you head into 2023, your business may be weighing whether to pay a car allowance or mileage reimbursement to employees. Our answer may surprise...

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...

If your company pays a monthly vehicle stipend, 40% or more of that money could go to federal and state coffers. With tax withholding reducing so much of an employee's take-home from a car allowance,...

Many organizations pay a mileage rate to reimburse workers for the use of a personal vehicle. But how do you know it accounts for all reimbursable vehicle expenses? Some expenses like auto insurance...

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 concerns...

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 high vehicle expenses,...

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

Wondering what portion of your mileage reimbursement rate should cover fuel costs? There is a way to calculate it and help determine whether your reimbursement rate can handle the recent spikes in...

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...

In 2017, California approved a law that increases the gas tax every year on July 1 based on the California Consumer Price Index. As gas prices continue to rise, business owners face serious...

As vehicle expenses increase, employees may complain that their car allowance isn't enough. Some employers may try adding a fuel card or fuel reimbursement. Others may switch entirely to a mileage...

Paying a car allowance with mileage substantiation? The time is now to re-evaluate your policy in light of current federal tax policy and economic pressures facing employees who drive personal...

[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 2802...