With the cents-per-mile program, employees’ mileage reimbursement is based on a flat per-mile rate for distances driven and reported. This program is generally best suited for reimbursing employees for infrequent business driving. When used for frequent travel, it tends to over reimburse high mileage drivers and under reimburse low mileage drivers. This mileage reimbursement rate also does not allow for fluctuations in fuel costs and differences in regional vehicle ownership costs. Every year, the IRS sets the standard mileage deduction rate for operating an automobile for business. The IRS consults with Runzheimer in order to determine this rate. Offering a managed cents-per-mile program based on the IRS mileage rate provides your organization with increased visibility to mileage driven and reduces your risk by requiring specific insurance requirements. However, organizations are not limited to this rate and a cents-per-mile program can be offered at any rate.
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- No tax implications
- Employee-owned vehicles
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- Reimbursement inequities
- Administrative time to process expense reports
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Runzheimer can help you evaluate your various business vehicle drivers to ensure that you are implementing the most effective program or combination of programs for your organization. Offering a managed cents-per-mile program based on the IRS mileage rate (or some other rate) provides your organization with increased visibility to mileage driven and reduces your risk by requiring specific insurance requirements.
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Working with Runzheimer to manage a cents-per-mile program alongside another vehicle reimbursement program allows for a seamless transition from one program to another, as necessary, and seamless program management within. These programs provide benefits for participants as well. They are consistent and simple.
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With a reimbursement program managed by Runzheimer, your participants have access to our mobile technology automating the process of tracking business mileage to create IRS-compliant mileage logs.
Are you looking for increased visibility into the total mileage driven within your organization? Runzheimer can help.