A vehicle allowance program can help employees cover the cost of using a personal vehicle for work, but a flat monthly allowance can quickly become outdated, taxable, or unfair across different...

For companies with mobile employees, driving remains essential to day-to-day business. But many reimbursement programs were built with a different economy, one with more stable fuel prices and lower...

A car allowance is often paid as a flat monthly amount to help employees cover the cost of using a personal vehicle for work. But unless the allowance is supported by business-use documentation, it...

Vehicle allowances can be taxable or tax-free depending on how they are structured, documented, and reconciled. IRS Publication 463 explains key rules for travel, gift, and car expenses, including...

The 2026 IRS business mileage rate is 72.5 cents per mile, effective January 1, 2026. Employers can use this rate to reimburse employees tax-free under an accountable plan, while eligible...

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...

As the U.S. workforce has grown increasingly mobile, new technologies and practices have developed. But many businesses still use outdated methods to support car allowances, reimbursements, and...

When an organization pays a car allowance, it is typical to pay the same amount to all employees. But there is a fairer method: A FAVR car allowance. A FAVR allowance makes equitable rather than...

The IRS fixed and variable rate (FAVR) program reimburses employee vehicle expenses accurately and tax-free. Using localized data to calculate payments, FAVR is more precise and transparent than...