This is a good money saving method for anyone who has a company that uses employees who drive on the job.
The FAVR plan is very cost saving as far as comparing the expense of vehicles and costs related to maintaining a fleet etc. and the FAVR plan.
There have been studies done to prove this but I don’t want to tell you to check it out by doing it. I would rather that you do the little math involved to see if your company would save money. Apparently most companies using it do save with the FAVR plan.
There are a few details and a little bit of reading to do if you want to get more familiar with how the IRS has set up this method along with a company in the USA who has taken the time to do a lot of work as far as accounting for costs, etc.
Here is a quote from the informative website www.FAVR.cc on this subject for employers in the USA.
“This plan can save a company about $2,000.00 a year against what they paid for the money per mile method for a driving employee. Some employees who drive a lot of miles per week can fudge the money per mile system by adding in their own miles for home use and cost the company a lot of cash.”.
There are other ways to deal with the IRS as far as getting an allowance of deduction for miles driven for business. They are discussed on these websites.
www.StandardMileageRates.com This is a good site for information on the subject of mileage allowance covering business, medical/moving and charity mileage to be taken as an allowance or deduction.
www.Actual-Expense.com This site is about keeping track of costs and all of the expenses that are incurred by the driver for the vehicle. Read the details to understand if it would work for you.
Have a Great Day!