What is Fixed and Variable Rate Reimbursement?
Companies need fair, accurate, and defensible reimbursement programs that align with their organization’s objectives. Fixed and variable rate programs combine the fixed costs of owning a vehicle with geographically-specific variable expenses to produce precise reimbursements. We invented the Fixed and Variable Rate (FAVR) program in partnership with the IRS so you can:
- Ensure accurate mileage reimbursements
- Provide precise and complete reimbursements for your mobile workforce
How Does FAVR Work?
Participants receive a monthly fixed reimbursement based on the costs associated with where they live. Fixed rates are calculated to cover:
The variable reimbursement each month is scaled to the price of gas where they live. This reimbursement accounts for the changing costs of:
Compliant FAVR programs ensure that participants are reimbursed tax-free.
Runzheimer ensures fair and accurate, geographically-based reimbursements. Our technology platform ensures employees boost productivity by automating the capture of business mileage with Equo® Mileage Capture, which allows them to submit mileage receipts from anywhere! Additional solutions include: