My friend, Bill, has been sent to a neighboring state to manage a new project that his company has just secured. Bill and a couple of colleagues will have to travel regularly from the head office to the site office and this project is expected to last about three months.
Bill told me that at first, his company had wanted to assign them the use of company cars but after much consideration, decided to adopt a Mileage reimbursement program.
Mileage reimbursement programs are actually gaining popularity among companies with mobile employees because of reduced risk and liability exposure. Moreover, they are highly customizable to meet the requirements of different companies with mobile employees, including companies like Bill’s where there are only mobile employees when there are projects to manage that are out of state.
Employees like such mileage reimbursement programs as well even though they have to utilize their own private vehicles for work purposes because car allowance is tax free, which means a larger take home pay. Besides, mileage reimbursement programs are highly accurate and fair to employees so they are not shortchanged.
Bill said that although there will be a lot of time spent on the road these three months, he knows that their traveling expenses will be well taken care of.