A compliant IRS vehicle reimbursement program is nontaxable. Payments to drivers are nontaxable and the full amount paid by the business goes directly to sales people. This results in the maximum funds in the hands of driver to acquire and operate their vehicle.
Vehicle Choice
A vehicle reimbursement provides drivers with flexibility of vehicle choice and options, while remaining within corporate policy, which suits their family and lifestyle. For some drivers that means a minivan with family console and video entertainment options. For others, it means a sport utility vehcile with tow capabilities and upgraded sound system. This increases the driver's satisfaction.
Fair and Accurate
A reimbursement schedule is developed for each driver and their corresponding territory to incorporate local variations in taxes, license, insurance and fuel expenses. The driver's territory and total business mileage are factored into the reimbursement, while adhering to company policy and guideliness. A driver is confident that their unique geographic location and business driving patterns are identified and factored into their monthly reimbursement.