A FAVR vehicle reimbursement program tailors employee mileage reimbursements based on your employees’ geographic location and personal vehicles they might drive to perform business tasks.
To help clarify any confusion surrounding FAVR, we have provided a breakdown of the most frequently asked questions and corresponding answers about the program:
Who is eligible for a FAVR program?
Everlance will work with you to develop and implement a compliant FAVR program that achieves your organization’s budgetary objectives. Certain eligibility requirements -- such as a minimum of 5 employees each driving more than 5,000 business miles per year -- will determine whether a FAVR program is suitable for your organization and its mobile employees. Please reach out to the Everlance Sales team to see if a FAVR program is right for your organization.
How do FAVR programs differ from Cents-per-Mile (CPM) programs?
A Cents-per-Mile (CPM) reimbursement program relies on the IRS standard mileage rate to reimburse employees for the use of their personal vehicle for work purposes. A CPM program reimburses employees the same rate, regardless of where they operate the vehicle, or the type of vehicle they might drive to perform business tasks.
A FAVR program is a more sophisticated mileage reimbursement program. Everlance’s FAVR car allowance program factors each employee’s local fixed costs of vehicle ownership (depreciation, taxes, insurance, license & registration, etc.) and variable costs of vehicle operation (oil & gas, maintenance, tire wear, etc.) to create a customized mileage reimbursement rate that is specific to each driver, based on the employee’s location and vehicle type.
How long are Drivers compliant?
The majority of the documentation is assigned expiration dates, and as long as the expiration date of a document has not elapsed, it remains valid.
Can new FAVR drivers enroll as non-compliant with their current minimums until they update their coverages?
Yes, they can enroll, but until they decide to meet their company requirements, a "Safe-Harbor" test will be applied to their allowances.
Will buying a new car change my fixed payment?
No. The FAVR payment is determined based on the planned vehicle that is set up during implementation with the admins of the account. A new vehicle will only affect whether the driver will be in compliance per the vehicle guidelines of age and MSRP.
What if a Driver has more than 1 vehicle?
FAVR allowances (by IRS rules, not Everlance) are based on a single employee vehicle. They may own 3 cars, but can only enroll one in the reimbursement program. Usually, that vehicle should be the newest one, even if it isn't the one they drive most often for business. So if the employee enrolls their 2016 Honda Civic initially but now wants to enroll their 2021 Toyota Camry instead, we can do that, but the employee must contact us, submit a new insurance declaration page, and we'll update their information.
What process should a driver follow to enroll another vehicle or replace the one currently enrolled for compliance?
They need proof of insurance for the new vehicle and upload it under their Everlance Account > Compliance. They also need to update the VIN text box (on Compliance as well).
When are a user's documents (or updates) due?
Compliance is pulled on the 4th of each month for all accounts. Drivers should submit documents or updates by the 3rd.
How often do fixed payments change/update for users?
Fixed rates change when the driver is assigned to a different program, or their mileage band change. For example, if they were expected to drive 10,000 miles in the year and they end up driving 5,000, their mileage band is adjusted, which affects their fixed portion.
If you need to contact support or have questions, please check out our help center at help.everlance.com or reach out at email@example.com or by phone at (872) 814-6308 (USA) or (877)704-2687 (CAN). Our office hours are 9am-5pm EST Monday - Friday and 9am-1pm EST on weekends.