What is Vehicle Reimbursement?
Vehicle reimbursement is the process whereby individual employees are reimbursed for driving expenses incurred for work purposes.
VEHICLE REIMBURSEMENT EXPENSE TYPES
There are two types of expenses taken into consideration when reimbursement is calculated: fixed expenses and variable expenses.
Fixed expenses are comprised of the hard costs associated with acquiring a vehicle. These expenses include capital cost, depreciation, finance cost, insurance, license and taxes.
This part of the reimbursement considers the cost of operating the vehicle. Variable expenses consist of fuel, maintenance and repair costs.
NOT ALL VEHICLE REIMBUSEMENT PLANS ARE EQUAL
There are many types of vehicle reimbursement programs but they’re not all IRS approved or non-taxable, accurately compensated or fair to different types of employees.
CarData provides accurate, IRS-compliant vehicle reimbursement programs that ensure complete accuracy for each driver’s reimbursement, backed by a dedicated support team – saving you time and money.