Implementing a smart and fair vehicle reimbursement program needs careful consideration of numerous factors, including tax implications, employee fairness, and administrative efficiency. By understanding the challenges and leveraging reliable technology solutions, companies can create a more cost-effective and compliant vehicle reimbursement program.
In this HRchat episode, we consider some best practices for running an efficient vehicle reimbursement program at work and why it helps keep employees happy and engaged.
For HR leaders, a key motivator is ensuring that the vehicle programs are fair and equitable. This includes providing reimbursements that are competitive within industry standards and sufficiently cover the expenses incurred by employees on the road.
HR leaders should also consider the administrative burden of managing a vehicle reimbursement program. This includes choosing the right program based on the needs of your drivers, accurately tracking the mileage of the drivers, calculating reimbursement rates, and ensuring compliance with IRS regulations. An accountable vehicle reimbursement program that uses mileage logs and a mileage tracker can help streamline these processes, reducing the administrative workload.
My guest is Lindsay Clayborne, Director of People and Culture at Cardata, a fully-managed vehicle reimbursement solution for businesses whose employees use their personal cars for work.
Questions for Lindsay include:
- On your LinkedIn profile, you write: “Three words that describe me, both personally and professionally: builder – learner – partner.” Please introduce yourself
- What is the type of company culture you strive to build and maintain at Cardata?
- What are some of the HR challenges when it comes to leading and supporting the often very distributed teams at Cardata?
- Problems with many current vehicle programs include significant and unnecessary tax waste, misunderstood program rules, lack of alignment with employee needs, and IRS audit risks. Can you tell us more?
- Can we dive into how a vehicle reimbursement partner can help set up a successful and fair reimbursement program? How can a partner like Cardata bring best practices to an organization that’s launching a new program?
About Cardata
Founded by fleet management leaders in 1999, Cardata is the fully managed vehicle reimbursement partner for field teams. Cardata collaborates with businesses by pairing easy-to-use technology and industry-leading expertise to design the simplest and most cost-effective solutions for work-related driving. As a leading SaaS partner for employee-owned fleets, Cardata’s suite includes reimbursement software, IRS-compliant tax-free programs, and business intelligence tools. This comprehensive approach reduces liability, lightens administrative burden, and generates average cost savings of over 30% when compared to traditional company cars or taxable allowances.
Cardata is driving what matters to their partners by adopting a data-driven approach to reimbursement, and co-creating solutions that align with customer goals while ensuring operational efficiencies. Programs include Fixed & Variable Rate Reimbursement, Tax-Free Car Allowance, and Cents per Mile. Could your field team be using their personal cars for work? Reach out to see how you can optimize your program.
Cardata offers a comprehensive tech solution for managing car allowance programs. It focuses on tax-efficiency, compliance, and fairness. Cardata’s software offers users accurate mileage tracking and reimbursement calculations.
The Cardata app’s unique and competitive benefits allow for drivers and businesses to…
- Save up to 38% by avoiding unnecessary tax waste
- Ensure compliance with IRS guidelines and reduce the risk of expensive audits
- Use up-to-date market data to set fair reimbursement rates and support the real needs of employees on the road
Related Content
In this HRchat episode, we take a look at ways to better communicate benefits to employees so they are engaged and more likely to stick around.
Our guest today is Ben Hale, CEO and Co-founder at Brite, a benefit decision software that helps employees pick the right employer benefits for them and their dependents. The decision tool is integrated with what the Brite team calls their “digital benefit guides” so users have an all-encompassing experience to learn about, and get a recommendation about their employer benefits.
Questions for Ben include:
- Brite claims to help educate and communicate employee benefits in an engaging and more effective way; making it easier for employees to choose the right benefits and paving the way for higher employee understanding and satisfaction. How does the Brite platform drive employee benefits engagement with sharable, easy-to-create digital benefit guides, packed with decision support tools?
- Sending ongoing benefits communications year-round can be beneficial to both employees and employers. Tell us about what to send and the tools one can use to make the process easier for both teams and employees.
- What's a good cadence for communications with employees?
- Developing a compelling employee benefits strategy is a key aspect of an HR team’s role as it significantly influences workplace dynamics and satisfaction. Offering employees comprehensive benefits is a good place to start, but if you don’t have a plan for launching, educating, and communicating these benefits, employees are less likely to engage with them. Can you share some tips for developing a compelling employee benefits strategy to help ensure employees understand and appreciate the value of a company's offerings?
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