A taxable car allowance may be simple to administer, but simplicity can come at a cost. When a flat monthly vehicle allowance is paid through payroll without business-use documentation, the payment...

Mileage reimbursement usually includes gas when an employer uses a cents-per-mile rate. The confusion starts when employees submit both a mileage log and a fuel receipt for the same trip. For...

Choosing a vehicle program means balancing cost, fairness, taxes, and employee experience simultaneously. For many employers, a decision about a Car Allowance becomes the first fork in the road,...

Interest in FAVR vehicle plans, also known as fixed- and variable-rate reimbursement programs, is growing as employers look for alternatives to taxable car allowances. A standard car allowance may be...

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...

Most standard car allowances are taxable because they are paid through payroll without documentation of business use. In that case, the allowance is treated as wages and may be subject to federal...

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 car allowance should be large enough to help employees cover the business-use cost of a personal vehicle, but not so high that the company overpays or creates unnecessary tax waste.

California, Illinois, Massachusetts, and Seattle have explicit employee expense reimbursement requirements that may affect vehicle reimbursement policies. Other states and jurisdictions may also...