What is FAVR?
FAVR, standing for 'Fixed and Variable Rate,' is a simple, tax-free reimbursement program designed for employees who use their personal vehicles for work. With FAVR, drivers are fully reimbursed for every work-related mile they drive.
You’ll receive a monthly reimbursement that covers both fixed and variable expenses. 'Fixed' expenses add up regardless of how often you drive your car, while 'variable' expenses vary depending on your driving frequency and mileage. Your fixed rate reimbursement is a set amount that will not change, and your variable rate reimbursements will change from month to month.
|Fixed Expenses||Variable Expenses|
FAVR has three big advantages for drivers:
- FAVR saves you money. As long as you follow the IRS compliance measures, reimbursements are 100% tax-free. Cardata offers ample support and guidance to help make sure you’re compliant, and we’ll notify you if you do start falling out of compliance. We’ve got your back!
- Your reimbursements are specific to the region you live in. For example, if gas prices are high in your region, your reimbursement will be higher.
- FAVR protects you even when you have a slow driving month. You do not need to drive extra miles to cover your car expenses: depreciation, insurance, title fees, etc. are covered by your fixed rate!