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The CFO's Path to Choosing a Mileage Reimbursement Program

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Learn more about the mileage reimbursement solution best suited for your business: Cents-per-mile programs make sense for companies that have a smaller headcount of mobile employees who drive occasionally for business. Mobile employees can be reimbursed tax-free (if the rate is at or below the IRS standard rate and they drive fewer than 5,000 business miles annually). Specialty vehicles aren't typically required when companies have cents-per-mile programs. Program efficiency is the main objective for CFOs choosing cents-per-mile programs. This means employees are reimbursed at a standard rate across the workforce based on how frequently they drive for business. Cents-per-mile program Cents-per-mile program These programs are best suited for businesses that have a mobile workforce of at least five employees who drive every day for work across different geographies. Employees can be reimbursed tax-free if they drive more than 5,000 business miles per year and meet other IRS-administered guidelines (for example, maintaining the company's minimum insurance requirements, vehicle make and model, etc). The key objective is cost savings for the CFO and business leaders. With FAVR programs, employees are reimbursed based on the actual cost of driving for work which results in cost savings for the business. This type of program eliminates the possibility of over-reimbursing employees and reduces the risk of a class-action lawsuit. Fixed and Variable Rate Reimbursement program Fixed and Variable Rate Reimbursement program This type of program is a better fit for businesses that have a larger headcount of mobile employees who typically drive every day for work. Tax-free reimbursements aren't as much of a concern for the business leader but there's a need for specialty vehicles tailored to specific job duties or brand standards. Operational efficiency is a primary concern for the CFO and decision-makers who choose a fleet program. Maintaining control over the company-provided vehicle's make and model is also important to the business. Fleet program The CFO's Path to Choosing a Mileage Reimbursement Program

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