Our company currently pays the recommended IRS reimbursement when an employee uses their personal vehicle. However, for trips over 120 miles, they are strongly encouraged to use a rental vehicle because it is cheaper for the company. We have gotten resistance from some who do not want to rent a vehicle due to the inconvenience, unfamiliarity, etc. I have heard of some employers who will allow an employee to drive their person vehicle in lieu of the rental but will only reimburse a much lower rate/mile because they had a choice to rent.
Does anyone have this situation? Pay varying rates or per diem for transportation only, etc? Anything you could share would be appreciated.