Effective FAVR Solution
Rating: 8 out of 10
IncentivizedUse Cases and Deployment Scope
We use Motus for positions that drive more than 6,000 miles a year for company business and use their personal vehicles. Each user maintains their own mileage log. Motus reminds users to submit mileage once a month. It also has a flag not to provide reimbursement for mileage older than two months back. We do not use Motus to process the payment to the user, although it can do that independently. We added integration to our expense software, Concur, instead. That makes vehicle fixed, and variable mileage reimbursement tied directly to expense processing. The combination of the two leads to more timely submission of expense reports.
Pros
- GPS Based Mileage Tracking
- Automating Accounting Portion of Payment
- Tax Compliance for a tax-free FAVR program
Cons
- Hard to manually enter miles for users who don't want to use GPS
- Very stringent on mileage submission deadline, once a month, or wait another month for users
- App is great, web interface could be improved, especially for the users
Likelihood to Recommend
I would recommend Motus to anyone processing a FAVR program currently. A tax-compliant system results in a saving for the company that can be passed along to the individual. The higher the effective tax rate for the individual, the greater opportunity for tax-loss savings. As a company, we made our policy more stringent but also increased employee gross pay while reducing employee cost.
NC
Nicholas Cole
Vice President Operations in Corporate at Barr-Thorp Electric Co. (51-200 employees)
Vetted Review
3 years of experience