AMHERST, N.Y., June 12, 2019 /PRNewswire/ -- Finding new efficiencies is a primary objective behind enterprise mergers or acquisitions. Typically, the synergy impacts products and services. For this multi-national company, an acquisition created unforeseen benefits: radical time savings for the HR department, reduced risk and cost savings for the enterprise.
That's because the company they acquired had been providing vehicle reimbursement by using a CarData FAVR plan. Both companies standardized on the FAVR program, with the company featured in this use case dropping their IRS standard rate reimbursement policy.
Smooth Transition to Better Processes
"CarData made the transition seamless," noted the company's Senior HR Manager – Americas Region. "And now, not only does CarData handle day-to-day administration and inquiries, our Client Service Associate anticipates my needs by proactively exploring driver issues and providing me with actionable data."
With CarData, a company's drivers go directly to their dedicated customer service representative when they have questions. And, CarData contacts a driver if, for example, there appears to be a problem with recording mileage.
The company now has offices in the U.S. and Canada. Adjusting reimbursement for geographic cost of living differences is a hallmark of a Fixed and Variable VRP. CarData's platform determines each driver's variable reimbursement in miles or kilometers driven, gallons or liters of fuel purchased. Tracking prices daily, CarData calculates the average price of fuel in the employee's specific region each month to ensure that reimbursement reflects the true cost. The plan also accounts for fixed monthly costs such as insurance, which also differ based on driver location and the type of vehicle profile.
The company opted to use Mi-Route, CarData's mileage tracking app for accurately logging miles in an IRS-compliant format, and Direct Pay, CarData's full service payment processing feature. Together, Mi-Route and Direct Pay replaced the old method in which drivers manually recorded the car's odometer reading at the start and end of each month, then submitted that data to HR for payroll processing.
A Partnership Saving Money and Time
Today, the company saves $382,000 per year with the CarData FAVR program. While cost savings are important, the Senior HR Manager and her team are pleased with the other advantages contracting with CarData created. "It's a great partnership. Anything I need, I just ask and it's delivered. We've eliminated missing mileage reports. Administration has been reduced for drivers as well, and any questions they have are quickly resolved. And the digital platform streamlines the review process for managers."
It has also reduced risk and potential liability. CarData inspects driver licenses to make sure they are valid and reviews insurance policies to ensure adequate coverage. The daily mileage recording enabled by Mi-Route makes the data defensible and compliant with non-taxable reimbursement requirements, further reducing exposure. Automated, direct payment to drivers happens separately from their paycheck, which gives them peace of mind, knowing that they've been fairly reimbursed.
About CarData Consultants CarData provides precision vehicle reimbursement programs for the mobile workforce. CarData services save money, reduce risk, and remove administration. CarData programs are compliant with the IRS and the CRA procedures.
SOURCE CarData Consultants