Accountable Allowance Tax-Advantaged Plans

What is an Accountable Allowance Tax-Advantaged Plan?

An Accountable Plan is one of three tax-free business deduction approaches the IRS describes for reimbursing mileage-related expenses. Accountable plans have two specific advantages: 1) the payment may be pre-paid to employees in advance of the expense. Payments are made on the first of each month for the subsequent 30 days. 2) The employer may choose the exact amount of the payment.

For organizations utilizing a flat taxable allowance, the move to an Accountable Plan from Driven may save you and your employee thousands in tax waste each year.

Benefits of Accountable Plans for Mobile Workforces

There are significant benefits for companies and employees in an Accountable plan.

For companies: Simplicity of the program – set your rates and pre-pay expenses. Save thousands in FICA taxes and administration. Mitigate organizational risk related to licensure and insurance. Gain insights on optimal driving behaviors. Ensure full compliance with IRS revenue procedures. Create employee benefits that attract and retain the best people.

For employees: Get paid in advance of your expenses. Save thousands in taxes. Minimize the administrative burden of record keeping and substantiation. Drive the vehicle best suited to your lifestyle and preferences.

How Driven Designs and Administers Your Accountable Program

Driven Reimbursement designs your Accountable Program to meet your exact requirements and is then comprehensively administered so no detail is ever overlooked.

Program Design: Your organization is unique, and your Accountable Plan should reflect that. You may choose any amount for your monthly vehicle reimbursement, and that amount may vary by employee or job function. You may change the amount at any time for any reason. Driven outlines the extent to which taxable income is minimized in each case. We ensure each of your employees meets your policy requirements on an ongoing basis – 365 days a year.

Program Administration: Driven Reimbursement believes that your program works best when you work on it least. Driven does all the tedious work: obtaining and validating drivers licenses, proof of insurance, mileage reporting, employee onboarding and changes, monthly or bi-weekly payments, taxable income reporting, compliance monitoring, aberrant driving behavior monitoring, continual program optimization, direct employee support, and pre-emptive notification of information you may be concerned about. You retain 100% control over your program and can take responsibility for as much or as little as you care to. We work as advocates for your interests so you can focus on your own priorities. Driven Reimbursement assigns a dedicated, experienced team member to your account so you and your employees always have a knowledgeable and friendly human to speak with.