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Why Vehicle Reimbursement is Not Compensation

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WHY VEHICLE REIMBURSEMENT IS NOT COMPENSATION In recent years, technology has allowed for the development of sophisticated systems for expense management. Advances have made it possible for employees to capture images of business receipts with their phones, submit them electronically, and be reimbursed for the exact costs they incurred. These types of systems dramatically increase efficiency and productivity for mobile workers while also improving visibility into exact expenses for finance teams. While general expense management has improved drastically, accurate vehicle reimbursement programs have not been embraced with the same vigor. Instead, employers rely largely on outdated reimbursement methods that require manual processes and do not account for individual employee costs. In many cases, a car allowance program is administered due to its perceived ease of use. However, this type of program is often seen as compensation and not vehicle reimbursement.

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