Motus White Papers

Business Vehicle Liability: Is Your Fleet At Risk?

Issue link: https://resources.motus.com/i/1028690

Contents of this Issue

Navigation

Page 5 of 6

5 A Fixed and Variable Rate (FAVR) reimbursement program has two elements: 1. A variable cents-per-mile rate for reported business miles to account for the cost of fuel, oil, maintenance and tires. Employees are reimbursed for 100% of their business mileage. 2. A fixed cents-per-mile rate that accounts for the cost of insurance, fees, taxes, depreciation and other vehicle ownership costs. The fixed reimbursement rate factors in the geographic costs for these things specific to where a mobile worker lives. Both the fixed and variable rates may be paid to mobile workers as a totally non-taxed program when management and mobile workers follow IRS (FAVR) guidelines. Motus helps you avoid the inherent problems associated with company-provided vehicle programs including risk and liability and tax waste. With personalized mileage reimbursement rates, each mobile worker is reimbursed for their specific costs based on where and how far they drive for work. ELEMENTS OF THE REIMBURSEMENT PROGRAM

Articles in this issue

Archives of this issue

view archives of Motus White Papers - Business Vehicle Liability: Is Your Fleet At Risk?