How Does My Compliance Status Affect My Reimbursements?

What happens if you see "NOT-COMPLIANT" in your Everlance app? Understanding the two instances of compliance and their different consequences is key.

• A) License & Insurance (Document Compliance), which involves drivers uploading and maintaining valid 1) Drivers License, and 2) Auto-Insurance Policy (e.g. the Declaration Page, where policy coverages are listed). Your documents must be non-expired and your insurance coverages (e.g. liability limits or deductibles) must meet your FAVR program requirements to be considered compliant, which involves drivers uploading and maintaining valid 1) Drivers License, and 2) Auto-Insurance Policy (preferably a Declaration Page).
  
• B) Vehicle Compliance, determined from the vehicle information on your insurance document uploads which involves these vehicle characteristics for the vehicle you enroll: 1) Vehicle Age (for example, 2019 or newer model), and 2) Vehicle MSRP (for example, $25,500). To determine vehicle compliance status, your vehicle's age (model year) and value (MSRP) are compared to the plan vehicle your employer has selected to build your FAVR program - in addition to confirming that you have not previously used advanced 'accelerated' depreciation methods to claim any previous tax deductions on your vehicle (this is not typical).

Being non-compliant with any of these requirements may result in reimbursement taxability (see below). Separately, if non-compliant with Document Compliance your company could enforce specific internal policies that may call for withholding reimbursement portions (or removing you from the FAVR program) if these requirements aren't met, in order to encourage compliance.

If the monthly compliance snapshot determines that you are non-compliant in these categories, that month's reimbursement is subject to a Tax Calculation to determine any potentially taxable amounts (see Tax Calculations).

🔔 Reminder: You can see both your Document and Vehicle requirements in the "Compliance" tab by clicking on "View requirements".

That's it! You now understand the differences between Document and Vehicle compliance requirements and their consequences. It's safe to say being not compliant with your Document requirements could be a far serious concern that must be attended to with urgency, while not complying with your Vehicle involves reasonable consequences; you don't need to go and buy a new vehicle just to solve this!

*MSRPs are gathered from a reliable vehicle information provider and do not account for non-factory modifications, transportation costs, or any other extras.