Mileage Reimbursement vs. Compnay Vehicle

 

Mileage Reimbursement vs. Compnay Vehicle

Oklahoma Gas and Electric is reviewing it Mileage Reimbursement process and would like to know how others may be handling this issue.

1.      At what mileage or dollar amount is an employee taken off mileage reimbursement and provided a company vehicle?

 

2.      If an employee reaches the point to have a company vehicle, is anyone providing a leased vehicle or some other compensation instead of a company vehicle?  

Anonymous (not verified)
Anonymous's picture

Because we supply several different types of vehicles depending on location or application, we utilize a break-even model to determine the actual mileage where we provide a company asset.  In most cases employees have to average more than 1800 miles/month to qualify for a company unit.

We do not provide any other method of compensation.  Its either a company asset or nothing.

Anonymous (not verified)
Anonymous's picture

We currently use 20,000 miles/ year as our threshold for our light duty (<10,001 GVW) vehicle allocation.  Although we use this benchmark we would be best severed in compensating the employee the IRS reimbursement rate, as our cost per mile still exceeds the reimbursment rate.  

There are a mulititude of other qualifying factors we use in our decision making as well :

  1. Specialized tool transported.
  2. Accessing customer locations, emergency zones, construction sites and other areas that may not be accessed in a private vehicle.
  3. Job duties require a company vehicle for indetification purposes or enhanced company exposure.
  4. Job duties require the employee to respond from home to emergencies.