FIXED + VARIABLE RATE REIMBURSEMENT.
In 1933, Runzheimer invented fixed and variable rate reimbursement (FAVR). With FAVR, employees drive their own vehicle and can receive non-taxable reimbursements for their fixed and variable vehicle costs. The Runzheimer Plan offers geographically sensitive reimbursements providing a true reflection of actual expenses. While savings depend on multiple factors, organizations that have switched to a fixed and variable approach tend to report savings up to $2,000 per driver.
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- Equitable reimbursements
- No capital drain
- No employer payroll tax expense
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- End user education
- Implementing accurate IRS-compliant plan
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Our team of experts works with you to develop and implement a geographically sensitive program, specific to your corporate objectives. Once the plan is implemented, we provide technology to your employees to automate the capture of business mileage. You can manage the transition of associates from one program to another as necessary.
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This program offers several benefits to the company, including flexible program design and control of image and risk. It also provides fair and accurate, geographically based reimbursements, and IRS-compliant mileage substantiation. Participants benefit as well. The reimbursement they receive is the closest match to the actual expenses of owning and operating their vehicle where they live and work. The plan is consistent, simple, and allows flexibility in vehicle choice.
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“We needed a partner that would execute our goal to reimburse employees for the business use of their car in a way that was fair, accurate and defensible. They have accomplished that while driving hard dollar savings for our company.” — Neil Baier, VP of Finance for Crescent Crown
Let Runzheimer help you manage the most fair, accurate, and defensible vehicle reimbursement program for you and your employees.