What A Fixed And Variable Rate Of Car Allowance Program Is?
And how the Motus reimbursement program
Some of you may know this type of program simply as FAVR here’s how a fixed and variable rate Of car allowance program works since you’re driving your own vehicle for work.
You need to be fairly and accurately reimbursed for your business mileage by your employer to qualify for a FAVR reimbursement there are a few IRS guidelines to keep in mind.
First, you’re required to drive more than 5,000 business miles per year or if you start midway through the year figure miles using the prorated equivalent.
Second, you’ll need to carry a certain level of coverage for vehicle insurance based on your company’s policy there may also be other guidelines.
But keep in mind that these guidelines are only recommended so that you can get reimbursed tax-free they don’t prevent you from being apart of the program.
So what exactly is a FAVR rate of car allowance program?
FAVR is a personalized mileage reimbursement program it’s based on where you live and drive for work, with FAVR you reimbursed for both your fixed and variable rate of car allowance costs.
Fixed costs are constant each month and
include things like:
- Insurance premiums
- registration fees
Variable costs vary month-to-month
and include things like:
- Oil vehicle
- Tire wear
For example, if you’re driving for work in New York City you’ll incur much higher costs for fuel and insurance than someone driving in Montana, FAVR accounts for these Geographic costs with a personalized approach Motus calculates a fixed and variable rate, specifically for you based on where and how far you drive for work with motifs, you get fairly and accurately reimbursed every time, you also benefit from technology which saves you time with automated mileage capture from the motifs app, there’s no more filling out Excel spreadsheets.
You’ll also have IRS compliant mileage logs that include all required details, and with the click of the button you can submit your mileage right from within the app beyond automation and time savings you benefit from on-demand training with Motus when you log into your account online tutorials will walk you through your reimbursement schedule, you’ll also get access to the online Motus Help Center to answer any questions any time.
The Member Services team is also available to help you when need it Motus helps you get started on the program an email from Otis explains, how to set up your account and begin tracking your mileage from there in-app tutorials will guide you through, how to use the Motus app but don’t just take our word for it take it from your peers.
With a FAVR program, you and your employer get a compliant tax-free reimbursement program that ensures every individual employee is reimbursed fairly based on the cost of driving where they live.
With Motus, you can simplify mileage reimbursement for everyone with personalized and accurate rates.