Employee travel programs are often the second largest expense for any company, next to employee compensation. Based on your employees’ physical location, costs can vary from city to city. Understanding the cost differences is challenging. Ensuring that employees are fairly compensated based on geographical cost leads to employee satisfaction and retention.
“Our reimbursement plan is similar to a BYOD program, where we allow employees to utilize their vehicles for both personal and professional use.”
Jim Doherty, President of AutoReimbursement.com.
AutoReimbursement.com (ARC) stands out as an expert in managing these costs effectively. ARC generates geographically sensitive reimbursement benchmarks for businesses. Best of all, the reimbursement is non-taxed under the IRS-approved Fixed and Variable rate (FAVR) programs. FAVR provides a structured approach to reimburse employees for using personal vehicles of their choice for business. ARC reduces costs by separating fixed expenses from variable (per mile) expenses. Fixed costs include vehicle depreciation, geographically sensitive insurance, registration, and applicable taxes. Variable per-mile costs include fuel, tires, and maintenance.
Creating a budget standard benchmark for the company while providing driver choice of vehicle
ARC’s extensive database delivers data for 44,000 zip codes and boasts a database of hundreds of vehicles updated annually. This empowers companies to select the ideal benchmark or standard vehicle while aligning with budgetary initiatives and employee satisfaction criteria. Ultimately, this helps businesses save costs and streamline operations. Drivers enjoy the choice of what to drive, but the reimbursement is the standard company selected vehicle adjusted to local zip code cost.
ARC also offers MileIQ, a highly rated mileage tracker app integrated into its fully mobile FAVR programs, to efficiently track business mileage. This innovative feature operates in real-time, ensuring the accuracy of vehicle mileage data and eliminating errors due to mileage reporting inaccuracies. On a monthly basis, employee reimbursement is calculated based on the chosen benchmark vehicle using the ARC Real Cost Database.
ARC’s program extends beyond cost management; it streamlines compliance and reporting, simplifying administrative tasks. The company assists businesses of all sizes, ranging from small-scale operations to larger enterprises, with over 10,000 drivers. ARC’s program eliminates the need for W-2 reporting and relieves drivers from the hassle of collecting receipts. This translates to non-taxable funds that go directly into the employees’ pockets, providing a 100 percent benefit.
ARC’s flexibility also ensures that programs match clients’ cultures. It engages in thorough consultations with prospects to understand their needs, cultural preferences, financial considerations, and budget constraints. This client-centric approach results in a program that saves costs and appeals to drivers.
The program’s mobility is a significant advantage. Drivers can access and manage accounts effortlessly through any device. An exclusive feature offered is monthly statements for drivers, explaining the details of their benefits.
AutoReimbursement.com reimbursement plan management (ARC RPM) reporting sets the gold standard in the industry with high management visibility. Unlike other static reporting options, ARC provides a unique, cloud-based reporting solution, allowing clients to craft their own reports. These reports are completely customizable, and users can organize, modify, and even perform various Excel functions before exporting them.
Compliance is a critical aspect of any FAVR Program. ARC RPM offers a comprehensive compliance report that provides an overview of drivers’ compliance with all program requirements. This includes vehicle age, value, insurance status, and business mileage reporting—crucial elements mandated by the IRS. ARC RPM also checks the validity of driver’s licenses, ensuring compliance. In addition to IRS compliance, ARC helps companies develop risk management policies.
ARC values continuous improvement and adaptation. ARC conducts annual audits and updates of customer programs to meet the ever-changing landscape of the marketplace. This dedication to flexibility and support has resulted in an impressive 99 percent client retention rate.
With a focus on cost reduction, compliance, and customization, ARC’s FAVR program stands as a valuable asset for businesses of all sizes. Its dedication to simplifying complex processes and providing tailored solutions demonstrates its leadership.
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