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Flexibility In Any Economy

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EMPLOYEES LIKE FAVR, TOO 4 FAVR has a number of benefits that will appeal to employees, including prospective employees, as part of a recruitment strategy. This is a plus in the oil and gas industry where turnover can be high. Receiving the fixed portion of the FAVR reimbursement designed to cover insurance, taxes, depreciation and registration, an employee earns more net dollars than a company with a fleet program. This also reduces the employees' tax burden. In contrast to flat allowances, FAVR is a tax-advantaged program, making it especially attractive. Employees are granted a tax-free, variable cents-per-mile reimbursement scaled to the price of gas locally, which accounts for the cost of fuel, maintenance, oil, tires and other incidental expenses. Mobile workers also can drive their preferred vehicle – as opposed to a dented three-year-old truck, as is the case with many oil and gas fleets – and get paid to do it. They also have the option to buy a new vehicle of their choice. An employee earns more net dollars on a FAVR program than they would with a fleet program.

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