Besides fuel, what employee expenses should be covered by a mileage reimbursement?
Insurance and taxes
Maintenance, oil, and tires
All of the above
Which of the following compensation plans is taxable?
Standard monthly car allowance.
Fixed-and-variable-rate reimbursement (FAVR)
Mileage reimbursement using the IRS mileage rate
Car allowance with mileage substantiation
Under the new tax code implemented in 2018, how much can you claim as a deduction if you receive a mileage rate that’s less than the IRS rate?
The difference between your mileage rate and the IRS rate multiplied by miles driven.
Any amount that exceeds 2% of your gross adjusted income.
None until the new tax cuts expire after the year 2025.
All business mileage is tax deductible.
Which of the following is NOT true of the IRS mileage rate?
Tends to over-reimburse high mileage drivers
Helps control company costs effectively and equitably
Is an individual tax deduction tool rather than a corporate reimbursement tool
For 2019 was calculated at $.58/mile
What flaw do standard car allowances and mileage reimbursements share?
They are both always considered forms of taxable income.
They both tend to shortchange mobile employees.
They both apply an equal rate to unequal expense needs.
They are both likely to attract the wrong kinds of prospective employees.
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