Are You Using the Best Method for Mileage Reimbursement?

When reimbursing employees for the business use of their personal cars, there are different methods you can use. You can reimburse actual costs, but you’ll need detailed substantiation and receipts. Fortunately, there are three alternatives: The mileage allowance method; The FAVR method; and The flat-amount method. The first two methods automatically qualify as being paid under an “accountable plan,” meaning the reimbursements are tax-free to employees. The flat-amount method is the…