We know it’s important to understand how a program works, so we’ve put together this list of answers to commonly asked questions about our newest program, TAAP.
What is TAAP?
TAAP (Tax-Advantaged Accountable Plan) allows companies to provide a fixed vehicle allowance and an optional variable rate while using mileage tracking and reporting to help determine which portion of the allowance may be tax-free versus taxable.
How does TAAP work?
- Your company provides a fixed vehicle allowance
- Drivers track and classify business mileage in Everlance
- Everlance uses this data to support reporting on taxable vs. tax-free portions
What do drivers need to do?
- Track trips in Everlance
- Classify business and personal mileage
What has improved in the TAAP experience?
- Clearer TAAP program visibility for drivers
- Admin access to tax reports directly in the Team Dashboard
- Ability for admins to manage TAAP program rates
- Ability for admins to choose their tax year
Where can admins find tax reports?
Admins can access TAAP and FAVR tax reports directly within the Team Dashboard
What information is included in TAAP tax reports?
- Business mileage captured
- Allowance amounts
- Estimated taxable vs. tax-free portions
Do drivers receive reimbursements through TAAP?
Drivers continue receiving a fixed allowance and variable rates (optional) from their employer. TAAP supports tax reporting for that allowance rather than issuing reimbursements.
Does TAAP replace our existing allowance program?
No. TAAP works alongside your existing fixed allowance, adding reporting to support more tax-efficient treatment.
What happens if drivers don’t track mileage?
Without mileage tracking, there may be limited documentation to support tax-free treatment of the allowance, which can impact reporting accuracy.
Who should I contact if I have questions?
Please reach out to Everlance support for assistance with setting up TAAP
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