Organizations across the country reference the Internal Revenue Service’s business mileage deduction rate when reimbursing employees for business use of their personal vehicles. The IRS mileage rate is an important baseline, but employers that structure their vehicle programs solely around this figure aren’t capturing the full picture.
From fuel rates to insurance to taxes, an assortment of variables impacts how much it costs to maintain a vehicle – and each is dependent on the driver’s city and state. An organization that fails to account for these local factors could be drastically over- or undercompensating their road warrior employees.
Learn more in this tip sheet.