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The Cost of Vehicle Programs: What Operations Leaders Need to Know

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The fixed and variable rate (FAVR) is the only IRS recommended procedure intended to reimburse employees tax-free for both the fixed (insurance, license and registrations fees) and variable (fuel, maintenance) costs associated with driving for business. Although tracking for all these costs can seem time-consuming, FAVR is the most accurate reimbursement solution; it provides a customized reimbursement to each mobile employee based on their actual local costs and business mileage, which can vary month to month. Technology now makes implementing and maintaining a FAVR program straightforward. In the past, manually tracking, documenting and reporting all the costs for every worker could be overwhelming. With today's technology, there is no excuse for Operations leaders not to streamline their reimbursement processes with FAVR. Using GPS-enabled cell phones and geographically- sensitive data, FAVR programs allow for the full range of costs involved in driving personal or company-owned vehicles for business to be measured in real-time, which creates employee-specific repayments. Learn more about increasing efficiency across your workforce Learn More The Cost of Vehicle Programs: What Operations Leaders Need to Know

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