Fixed and Variable Rate Reimbursement (“FAVR”)

Drive for work. Drop the tax.

Vehicle programs used to be complicated and expensive. We set out to make them simple and affordable for our clients.

Reimagine your reimbursements.

Do any of these issues affect you?

Both you and your drivers are losing money from car allowances to tax waste
Sales leaders: your drivers are spending thousands of hours a year maintaining spreadsheet mileage logs
HR is wasting time verifying insurance and processing complex reimbursement payments
The IRS standard rate ignores your drivers’ geographies and creates an environment of winners and losers

If so, a Cardata FAVR program could save your company money and your employees time. We are obsessed with making driving programs more efficient because we see so many companies wasting time and money on their driving programs.

Let our programs solve your problems.

Key Components of Cardata’s FAVR Program:
Use Powerful Software

A GPS app, reporting cloud, and payment processor allowing you to reimburse for the exact miles driven. Never over- or under-reimburse mileage again.

Champion Support & Flexibility

We give you the support you deserve with a dedicated account manager to make sure your program works for your business.

Drive Policy & Accountability

Define and oversee your business driving policy to promote accountability and reduce workload for everybody.

Ensure Total Tax-Efficiency

Make your business tax-efficient by separating drivers’ reimbursements from their income (and stay on the IRS’s nice list!).

Reduce Your Liability

Reduce company liability with our insurance compliance program. We validate that your employees drive with the right coverage limits and endorsement.

Outsource to an Expert

Never worry about managing complex reimbursement programs again. Cardata’s leading industry experts guarantee it.

Do your vehicle program a FAVR: book a demo with us today.
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Did you know?

To qualify for a FAVR program, there are certain annual IRS requirements that must be met. Drivers need to cover significant mileage and have relatively new cars.

Meet with a FAVR expert
We take care of it for you.

Cardata programs are set up to take all the compliance work off your plate. We update your drivers whenever they are falling out of compliance, so your HR department has no worries.

Do you want a less rigid program, with fewer compliance measures? No problem. Just check out our tax-free car allowance for the same awesome savings without the compliance hassles.

FAQ about FAVR

What are “Fixed and Variable Rate reimbursements”?

When your employees drive for work, they incur fixed and variable expenses. An example of the former is depreciation; of the latter, gas.

FAVR reimbursements cover these expenses, meaning your employees do not pay out of pocket to drive.

Are FAVR reimbursements tax-free?

As long as your drivers meet the criteria for the FAVR program, reimbursements are paid totally tax-free. Driving is a legitimate business expense; the IRS enshrines that in its guidance for FAVR programs.

Cardata uses software and keen program oversight to keep your program IRS-compliant and tax-efficient.

When employees bring their own car to work, am I liable for driving accidents?

Cardata verifies every driver’s insurance policy to minimize your risk profile. The wrong insurance endorsement can leave you liable, but Cardata takes care of that. There are more than 100 insurers in the US, but we have the expertise to verify all their various policies.

We include insurance verification with every program we offer. We protect you and your drivers on the road.

We’re ready when you are.

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