Thoughts & Beyond

Some if not most companies these days, make us of their mobile employees personal vehicles for their business use. The concern however with this practice is that often it cannot be definitely known which of the total costs incurred by such employees are for business and for personal use. Car Allowance can be implemented through a vehicle reimbursement program such as that of Corporate Reimbursement Services Inc. (CRS), a management consulting firm and such reimbursement program is flexible and can be customized for companies with mobile employees. What advantages or benefits can one get from such vehicle reimbursement program? For the company with mobile employees, it would mean for them cost savings since they don’t have to buy a vehicle for their mobile employees and that would means savings on their funds which they can use for other company projects; it will reduce risk and liability exposure, if and when an accident will happen just in case; and their is ease of administration and less less admin resources needed. For the part of the driver-employees, it would mean fair and accurate costing, it is tax-free with regards to the reimbursements paid to your employee-drivers and it is flexible. Given the personalized driver reimbursement schedule, it will give mobile employees every component that will be used to calculate their individual reimbursement rate per month. Companies should think about this program for the benefits they’ll get from it.

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