International Oil Company Achieves Compliance Cuts Costs, and Replaces Flat Car Allowance & Fuel Card with CarData FAVR Program
Addressing Compliance Can Actually Improve Policies
The long-standing company car allowance plus fuel card vehicle reimbursement policy at a large oil producer and distributor wasn’t meeting IRS requirements. The company has 400 employees who log 4.85 million miles annually. “Our old program wasn’t auditable,” explains the company’s HR Compliance Manager. “We needed a reimbursement program that was compliant and would pay our employees appropriately for business use of their vehicle.”
Their Flat Car Allowance & Fuel Card consisted of three tiers of flat rate allowances assigned based on drivers’ manually maintained mileage records. And, with the fuel card, it was impossible for managers to review vehicle expense reports and know how much of the fuel charged to the company was consumed for business use. After all, “You can’t press pause on a gas tank.”
It’s a Digital Age, But Business Still Happens Between People
The HR Compliance Manager would tell you that her search for a provider began with Google, but it was during person-to-person interaction with CarData’s Services Team when she got the information they needed. “CarData provided clear details on how the program would work and was very open to discussions with our management team,” she says. “Once, when the Customer Service Representative was unable to attend a meeting, a CarData senior executive stepped in rather than rescheduling. That was a clear signal and gave us a lot of confidence.”
The experience resulted in a switch to a CarData Fixed and Variable Rate (FAVR) vehicle reimbursement program that included equipping drivers with CarData’s mobile mileage tracking app, Mi-Route. The FAVR program fairly reimburses drivers by adjusting for regional fuel prices, accounts for variations in insurance costs and creates uniform structure for all drivers. The Mi-Route app establishes defensible data, stored in the cloud. The CarData FAVR program is accountable, pays drivers fairly, and gives managers an easy-to-use mileage reporting and approval system.
“They manage it. Very well, might I add.”
“I don’t think I’ve waited more than a day to get a response to a question, with the answers I need and can share with colleagues.” She adds that a recent employee survey garnered 100% response. Every driver confirmed never missing a payment, which has gone a long way toward getting employees to embrace the new policy. Meanwhile, her quarterly reporting is quick and easy, and accurate mileage reporting has reduced expenses.
It’s only been a year, and the relationship is off to a typical great start. “The customer service has been beyond exceptional. I just direct any inquiries from drivers to CarData and they manage it. Very well, might I add.”
About CarData Consultants CarData provides precision vehicle reimbursement programs for the mobile workforce. CarData services save money, reduce risk, and remove administration. CarData programs are compliant with the IRS and the CRA procedures.
MEDIA Contact: Megan Dean
Marketing & Sales Specialist | CarData Consultants Inc.
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