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When one of your employees uses a personal vehicle for a business trip, he can claim compensation paid by the company. The mileage reimbursement is calculated based on a scale set by the tax authorities and requires the establishment of an expense report. Kliks  mileage reimbursement calculator  can help you with how mileage reimbursement works. WHAT IS MILEAGE REIMBURSEMENT? The reimbursement of mileage expenses is granted when a personal vehicle of one of your employees is used for a professional journey. It covers the inherent costs and expenses related to the use of a car, a motorcycle, or a scooter of less than 7 HP, and since 2016 a bicycle. The use of a rental car or a vehicle belonging to your company's fleet does not qualify. Reimbursement of mileage expenses is a tax benefit granted to employees of a company. The amount of compensation calculated is deducted from an employee's taxable income, in the same way as other professional expenses. For the company, it is a su...

  The Fixed Rate and Variable Rate (FAVR) subsidy, or Fixed and Variable Rate Reimbursement, is a way to reimburse employees who use their own vehicles or leased vehicles for work-related activities. For tax purposes,  FAVR   payments must be made at least quarterly, in accordance with Internal Revenue Service (IRS) guidelines, which also place certain restrictions on how and to what extent an employee's vehicle must be used to qualify for the allocation of FAVR. Understanding Fixed and Variable Rate Allocation (FAVR) A fixed and variable rate allocation plan may be referred to as a "mileage reimbursement plan" or a "fixed and variable plan." Reimburses employees through a combination of monthly allowance and mileage reimbursement payments. An advantage of FAVR over a flat car/business travel allowance is that it can be tailored to each employee's location-specific costs and their actual monthly mileage. Such a system, when used properly, can prevent e...