Tax-Free Car Allowance

Big savings with no hassle.

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

Our Tax-Free Car Allowance is an IRS-compliant reimbursement program with fewer compliance measures than our Fixed and Variable Rate plan. TFCA is easy, outsourced, and saves companies and drivers money.

Ready to compare programs?

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 programs
The IRS standard rate ignores your drivers' geographies and creates an environment of winners and losers

If so, a Cardata TFCA 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 TFCA 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.

Ready for one allowance, hold the tax?
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See how Cardata can help you achieve a 250% ROI
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FAQ about TFCA

What is a Tax-Free Car Allowance

It is a reimbursement program that repays your drivers for the business use of their personal vehicle. It is outsourced, easy, saves drivers and companies time and money.

How do I know what program to pick? Should I pick this one, FAVR, or CPM?

Firstly, you do not have to! We run hybrid programs for our clients, which combine elements of several programs.

Which program drivers are put on depends on how far they drive, how old their cars are, and how expensive. Generally, if the cars are very expensive, TFCA is better. If fully depreciated, TFCA again. If the cars are new and moderately priced, FAVR is generally better.

Call us and, after a few questions, we can tell you what balance of programs would be right for you!

Is TFCA a flat rate or a fixed and variable rate reimbursement?

The latter, a fixed and variable rate reimbursement.

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.

Our Tax-Free Car Allowance reimbursements cover these expenses, meaning your employees do not pay out of pocket to drive.

Are TFCA reimbursements really tax-free?

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

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.

The right Insurance coverage is a requirement for FAVR Flex programs. Cardata works with every driver to make sure they are covered.

We’re ready when you are.

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