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Losing Cents Per Mile: How Cents Per Mile Programs Can Cost You Millions

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LOSING CENTS PER MILE: HOW CENTS PER MILE PROGRAMS CAN COST YOU MILLIONS Mobile employees present unique challenges for companies. While organizations certainly aim to reimburse employees fairly, accurately, and defensibly, the process of collecting, recording, and reimbursing for the many costs mobile workers incur while traveling often creates huge administrative burdens. Overwhelmed employers often choose to offer a cents-per-mile reimbursement method, offering a set rate for each mile driven, such as the IRS Safe Harbor Rate. These programs offer a simple solution but often inaccurately reimburse employees and actively incentivize unproductive behavior. Add in the risk of potential lawsuits, and the cost for maintaining cents-per-mile programs can reach the millions.

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