Inflation Proof your Vehicle Program
We’re all feeling the weight of the economic crisis. According to Pew Research, inflation hit a 30-year high at the end of 2021 with a 6.2% rate. From groceries to fuel, consumers are paying more for pretty much everything and getting less in return.
This is specially true for employees who drive for work: gas prices are subject to rapid volatility, and new vehicle costs and residual values are in a sustained period of elevation. If your car allowance amount does not match the increasing inflation, your drivers are likely paying for business expenses out of pocket. Or deciding not to drive at all.
So, while inflation and a future recession may be unavoidable, how can you proactively protect your bottom line in 2022 while retaining top employees? By building a competitive, non-taxable vehicle program.
Adopting a vehicle program that adjusts to cost factors in real time can protect your company from inflation and recession by:
- Reducing the impact of volatile cost factors
- Keeping costs accurate
- Reducing capital outlay
- Reducing tax waste
- Providing a fair employee experience
- Improving employee satisfaction
Watch this virtual discussion to learn how to shield your vehicle program from inflation in 2022.
Make positive adjustments to your vehicle program, protect your bottom line, and reveal areas where your business could be more profitable.
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How to Build a Tax-free Car Allowance?
A flat car allowance is taxed as additional income because it isn’t attributed to mileage and isn't backed by data.
The average annual vehicle allowance costs employers about $7,441 per employee in the program when their portion of payroll tax is included. Due to the tax waste an allowance creates, employees only take home $4,729.
How Does Motus Account for Inflation?
With a Motus tax-free vehicle program, fluctuating costs of owning and operating a vehicle are accounted for and updated every single month so your employees' pockets and driving behavior are not impacted by inflation.
Cost Savings in Tax-free Allowances
Motus offers a suite of tools to simplify the reimbursement and management of vehicles, devices and remote work programs. Each product helps eliminate exposure to potentially serious tax and labor laws and provides accurate reimbursement rates, localized to the home address of your employee.
Powered by an unmatched pool of data, refined over more than 80 years, and updated in real-time, Motus is the platform of choice for companies committed to workplace agility.
"Motus helps us be consistent in treating everyone equal and fair with a standard calculation for all." - Human Resource Manager
"Motus has reduced Accounting, Payroll, and Administrative costs and is very easy to manage." - Operations Manager
"Once our employees bought into it, they really like using it and the reimbursements. In turn, our organization has recognized significant cost savings while staying compliant with the IRS." - CFO at Medium Enterprise Beverage Business