Vehicle Reimbursement Solutions
Is it time to get out of the car business and concentrate on the business at hand? Is structure needed to validate and support car allowances? Are reimbursements defensible and accurate?
Mobile employees, and specifically those using vehicles, incur expenses while operating in the workforce. Business related usage of vehicles classifies as a business expense, and it is important to determine with precision how much to reimburse a company’s drivers.
Flat rate reimbursements have the continual problem of either overpaying or underpaying employees, producing either corporate or driver losses. In order to produce an efficient reimbursement, factors such as daily fuel prices, territorial differences in depreciation, license and title fees, as well as taxes all must be accounted for. CarDATA Vehicle Reimbursement/Car Allowance programs incorporate all of the variable and fixed expenses for owning and operating a vehicle. CarDATA Online is built on verifiable and accurate data, resulting in programs that increase efficiency, and employee satisfaction, while reducing administrative burdens.
CarDATA SMART DATABASES™ maintain a price profile down to a city-zip level for fuel, insurance, maintenance, license and all related automotive taxes, ensuring complete accuracy for each driver’s reimbursment. Fuel costs, the most volatile of all expenses, are tracked daily across the country. To incorporate these expense differentials, each driver’s reimbursement rate is updated monthly on their individual driver schedule.
Beyond the Vehicle Reimbursement/Car Allowance rates, CarDATA solutions work to mitigate risk and reduce corporate liability. Thorough insurance coverages are conducted and driver licenses are scanned to ensure all drivers are legally able to safely operate a business related vehicle.
At CarDATA we design and support non-taxable vehicle reimbursement solutions, in compliance with the Internal Revenue Service (IRS) and Canadian Revenue Agency (CRA) guidelines. The three primary revenue procedures are 1- the Accountable Plan 463, 2- Fixed and Variable Rate (FAVR) Plan and 3- the IRS Standard Mileage Rate/ CRA tax-exempt allowance rate. To find out which solution best suits your business, our Reimbursement Model Comparison page offers information on each plan.