Vehicle Reimbursement Program
Quick definition
A vehicle reimbursement program is a company’s system for paying employees for using their personal vehicles for work.
Full definition
A vehicle reimbursement program helps cover employees’ costs when they drive their own vehicles for business. These costs include fuel, maintenance, insurance, and depreciation.
Companies can use cents-per-mile reimbursement, fixed and variable rate (FAVR) reimbursement, or car allowances. A business may use different methods for different employees based on their driving needs.
The program also establishes how employees record business trips, submit mileage, and receive payments.
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