EMPLOYEE BENEFITS

Everlance and Your Team

Put more money back in your drivers' pockets while saving them time, helping retain valuable team members

Driver
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Align your program and goals

Your driver benefits will guide the design of a tax-free FAVR or CPM reimbursement program for your team, and you can stay on top of spend with our admin dashboard

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Ensure fair reimbursements

Each employee's trips are automatically and accurately tracked with our #1-rated app, so reimbursements are unique to how much they drive and their associated costs

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Eliminate manual processes

Your employees get reimbursed quickly and efficiently with no time wasted capturing mileage, validating logs or figuring out reimbursement amounts

Trusted by customers to save time and money

Versiti
Hoffman-Beverage-Company
Catholic Charities USA
mainland construction

and many more!

Everlance was very well received by the organization as a whole... Having an app like Everlance makes it easy for employees. It’s easy to get the reports to us quickly, so we don’t have to worry about delays. We can turn that reimbursement around right on time.

This means our employees can focus on the work they need to focus on.

Fred, Director of Finance Catholic Charities West Michigan

Fred

Let's chat!

Please use the calendar to schedule time to discuss your priorities and challenges with your current vehicle program. I'll share some of the common underlying problems we see across customers and how they might be hurting your organization.

The True Cost Difference: Mileage Stipend vs. Reimbursement

 

From employee benefits and vehicle needs to compliance and tax implications, there's more than one factor that could make a program the more cost-effective and efficient choice for your company. In this guide, we’ll focus on the true cost difference between a stipend program and mileage-based reimbursements.

Stipend & reimbursement 101

First, let’s go over the basics of your options for compensating employees when they drive their own vehicle for business purposes.

A stipend, or flat allowance program, reimburses your employees a set amount for the miles, gas, maintenance, and/or insurance costs for driving their personal vehicles on company business.

A mileage reimbursement programs pays your employees an amount that can change based on how many miles they actually drive for work. there are two main types.

  • Fixed and variable rate (FAVR). A FAVR program reimburses drivers separately for the fixed costs of owning a vehicle, such as insurance, taxes, and depreciation, in addition to variable costs of operating a vehicle, like fuel and maintenance — all of which can differ based on vehicle type and location.

  • Cents per mile (CPM) program. A CPM program reimburses employees at either the IRS standard deduction rate or an internally developed custom rate for every mile they drive.

The true cost of a flat allowance program

Going with a flat allowance program may seem attractive for a couple of reasons. First, giving your employees a monthly stipend for using and driving a personal vehicle seems like a nice perk.

Second, the idea of implementing a flat allowance program seems easy enough. All you have to do is set aside, say, $600 a month per employee and then give them their stipends, right Not exactly. In reality, you end up paying more and employees end up receiving less in their bank account.

Flat allowances have one large downside: the IRS considers them as income and as a result, they create “tax waste.” Since a monthly allowance is considered a form of compensation similar to a salary, it falls subject to payroll and income tax. This means your employee will actually be taking home much less money than what their actual allowance is.

For example, for a driver receiving $600 per month, as much as 40% can be lost to taxes. But if you want to make an allowance program work for your company, we suggest adding a 30% cushion to account for both the taxes you and the employee will have to pay.

As you can see, a flat allowance may seem easy to implement, but there are major cost disadvantages that become apparent upon closer evaluation.

Flat allowance for a driver receiving 600 per month: $180 employee taxes, $60 employer taxes, $420 employee take home benefit

Representative example based on a single-status tax filer making $85K/year in California pre-tax and not including additional local taxes that may apply

green-logo-arrowThe Everlance Difference

Green check markAutomatic & reliable GPS trip tracking

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Smart auto-classification with work hours, favorite trips and more

Green check markDynamically updated manager dashboard with starting & ending times and route map for every trip

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Admin controls to manage team structure, set favorite places, customize expense codes, etc.

CheckIntegrated expense management

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Customizable report approval flows

Green check markMultiple options for reporting and data exports

Green check markNamed Customer Success Manager

CheckIRS and HIPAA compliant