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Does anyone have a good vehicle expense reimbursement plan that they are willing to share?

Patricia Montour's Profile

We operate franchised restaurants and have a prospecting employee that uses a personal vehicle for some travel. We also provide a van for food deliveries.


Jeff Lenning
Title: President
Company: Excel University
LinkedIn Profile
(President, Excel University) |

Patricia - I just saw your question, and I wanted to reach out and say hi! It is nice to see you online here! Small world :-)


Patricia Montour
Title: CPA, CGMA
Company: Private Company
(CPA, CGMA, Private Company) |

Nice to see you too! I am constantly amazed about how small our world is!



Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Not sure what you mean by plant. [admin: was "plant", spelling corrected in title]

If the employee uses their own car, the IRS rate is pretty liberal. You can (check the IRS regs) discuss covering the deductible if there is an accident while working.

As far as the van, that should be a company owned vehicle.

On the other hand, if you're talking fleet maintenance, there is a nice program called

Patricia Montour
Title: CPA, CGMA
Company: Private Company
(CPA, CGMA, Private Company) |

It really is a good think that I don't type for a living. I meant to say "plan". I have a regional manager that is attempting to provide a reimbursement plan for this employee. I would like to have something to benchmark his document to.

Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Some days my fingers don't work either...

I think Vik said it well. Either use IRS rate or pay the gas, but don't do both. In either case make sure there is some type of trip log to legitimize the expense.

Also, make sure you have a policy on accidents and tickets (both parking, speeding and other equipment tickets). While talking about policy, make your policy clear about DUI and DWI.

Mark Matheny
Title: VP - FInancial Planning and Analysis
Company: Novolex (formerly Hilex Poly)
(VP - FInancial Planning and Analysis, Novolex (formerly Hilex Poly)) |

We reimburse at the IRS per mile rate.

David W. Morgan
Title: Chief Financial Officer
Company: Cirque Energy, Inc.
(Chief Financial Officer, Cirque Energy, Inc.) |

Use I have used them in the past. They are the Gold Standard of vehicle reimbursement plan administrators.

Topic Expert
Paul Benedetto
Title: CFO, Director of Finance, Consultant
Company: Nextwave Software, Rethink Fabrics
(CFO, Director of Finance, Consultant, Nextwave Software, Rethink Fabrics) |

Here is some verbiage pertaining to use of personal car / mileage that I pulled from previous company policies that I have developed - portion(s) of this might be helpful:

Using Personal Vehicles:

Travelers using personal vehicles for business will be reimbursed for actual miles driven, based on IRS guidelines (currently $0.56/mile). Gas is not reimbursable when using a personal car. Parking fees, bridge and road tolls will also be reimbursed. Drivers must have appropriate insurance coverage as the Company insurance policy does not cover personal vehicles. Use of a personal vehicle for company business must be authorized by a manager in advance. Note: Mileage between your home and your primary work location is exempt from reimbursement.


Travelers should use rental cars only if other transportation does not meet business requirements. Local transportation should be used as a low-cost option: bus, taxi, subway, and hotel shuttle.

Traveler’s car reservations may be booked by company travel agent (or designee) to ensure discounted rates with negotiated vendors. Travelers may also book car reservations via the Internet or with the car company directly if there is a cost or efficiency savings.

Hertz, Avis, Budget and Alamo are our preferred companies and should be used when possible and cost effective. Discounted rates and other benefits have been negotiated.

Special Car Rental Note: Ask for specials that may be available at the pick-up counter.

Compact cars should be reserved with the preferred car rental vendor. If three or more employees are traveling together, transportation of a client is involved; or additional space is needed for transporting supplies, etc., a mid or full-sized car may be reserved.

The car must be rented under the name of “Company Name” rather than in the traveler’s personal name – travelers are the “authorized representative” of the Company. The Company has a special “hired auto” insurance policy; therefore all optional insurance for rental cars (CDW, LDW) should be declined (unless a traveler is specifically directed to do otherwise by the designated head of Human Resources.

Rental car companies require that the driver present a credit card at time of pick-up. Travelers should pay car rental charges with personal or corporate credit cards and file a reimbursement form or submit a reconciliation report.

If a traveler is under 25 years of age, special arrangements for renting will need to be made. Please inform the designated head of Human Resources.

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