FAVR from Driven Reimbursement

What differentiates Driven Reimbursement’s FAVR programs?

1. Service: Advocacy for your interests. Proactive engagement. Direct access to your account manager(s).
2. The largest database of current model year vehicles and their characteristics in the world.
3. The most sophisticated technology to minimize any taxable income in your program.
4. AI technology to oversee program compliance, potential outliers in your driving tendencies, and minimize administrative care and feeding.
5. Clear, but extensive and detailed reporting.
6. Full compliance with IRS revenue procedures.
7. Minimized annual program year disruptions to employees.
8. Low(est) price.
9. No contracts of adhesion.
10. No junk fees.

What is a Fixed and Variable Rate (FAVR) Reimbursement Plan?

A FAVR Reimbursement Plan is one of three tax-free business deduction approaches the IRS describes for mileage-related expenses. Of the three IRS methods (Standard Mileage Deduction Rate, Accountable Plans, and FAVR), FAVR is the most accurate. The accuracy is a result of using local cost factors such as gasoline, taxes, and maintenance in deriving individual reimbursements. FAVR also adjusts to the mileage an individual driver accumulates in the course of conducting company business. As you drive more, you consume more of the useful life of the vehicle (depreciation) and incur mileage-related costs more frequently. Correspondingly, FAVR is the only IRS method of reimbursement that takes these factors into account.

FAVR works by examining the place where an individual employee lives. The state of residence will determine many of the attributes affecting the costs that employees face in owning and operating a car. For example, Florida residents face higher insurance costs than their colleagues residing in Missouri. California employees will pay more for gasoline than those who live and work in Oklahoma.

As the name suggests, FAVR reimbursements have two components: 1) a monthly fixed payment that does not change all year; and 2) a variable payment that is directly associated to the number of business miles driven each month. The variable rate does change month to month because the underlying costs – most notably gasoline – are constantly changing. Unlike employees receiving the Standard Mileage Deduction Rate, as fuel prices rise, FAVR participants will see a corresponding increase in their variable payments.

Benefits of FAVR for Mobile Workforces

There are significant benefits for companies and employees in a FAVR plan.

For companies: * Accurate and fair reimbursements to all employees – nobody loses, nobody gets an unearned windfall. * Cost control – you control the parameters that affect your reimbursement budget, increasing predictability. * Elimination of tax waste – get dollars into employees pockets, not the government. * Risk mitigation – reduce liability and risk in multiple areas that are important to your business. * Administrative simplicity – lower the burden of running a reimbursement program and managing taxable income. * Managerial oversight increases – understand where time and dollars are being spent. * Adapt to current business conditions – you can make new decisions about your FAVR program when you choose. * Improve employee recruiting and retention as a result of your FAVR program. * Maximize asset utilization – pay only for what you use. * Achieve 100% IRS compliance to erase audit risk.

For employees: * Get an accurate reimbursement based on where you live and how much you drive for company business. * Get protected from spikes in prices – your reimbursement goes up as costs go up. * Drive the vehicle that best fits your lifestyle. * Keep the equity the company pays for in your own car. * Make personal budgeting easier knowing your fixed payment won’t change. * Take advantage of FAVR rules to enhance the value of your reimbursement. * Minimize recordkeeping.

How Driven Designs and Administers Your FAVR Program

Driven Reimbursement obtains and manages the most comprehensive vehicle cost database of any provider in the reimbursement space. That’s how we ensure our programs are the most accurate and defensible in the world; built to your exact requirements and then comprehensively administered by us so no detail is ever overlooked.

Program Design: Your organization is unique, and your FAVR reimbursement program should reflect that. Driven evaluates every factor that impacts your program performance to maximize company and employee benefits. We ask you simple questions, explore choices and alternatives, and then propose solutions that are practical yet strategic. We will explain the advantages of each aspect of your unique program, what your options are, and offer ideas that could help you achieve related goals. Other industry providers attempt to fit you into one of their pre-packaged programs for their convenience. Beware of off-the-shelf solutions – they will never deliver the advantages that a customized plan creates for you.

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’re 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.