50 Most Admired Companies to Watch 2023
"ARC is the only program to provide cost of ownership down to 44,000 zip codes for vehicle depreciation, insurance tax, and registration in the FAVR program."
A Fixed and Variable Rate (FAVR) Reimbursement program which is IRS approved, lets your employees use the automobile of their choice. In addition, the program is non-taxable, helps companies lower risk, and costs if you have mobile employees who drive for work. ARC has the expertise and resources to customize FAVR programs; AutoReimbursement.com (ARC) serves over 50 industries, including, food & beverage, chemicals, pharmaceuticals, industrial sales, convenience stores , and many more.
AutoReimbursement.com was founded in 2009 and is based in Oconomowoc, Wisconsin.
Jim Doherty, President of AutoReimbursement.com, spoke exclusively to CIO Bulletin on how his company helps clients develop their businesses faster by providing them with comprehensive FAVR solutions and exclusive technology to manage the program
The Rise of AutoReimbursement.com
Vehicle reimbursement is often the number two expense in any company; some companies have leased or owned vehicles. Others pay a flat taxable allowance or cents per mile. From Fortune 100 to small and medium businesses a non-taxable FAVR plan has become a best in practice method; ARC solves what is the amount that should be paid based on ARC technology.
Here are 3 main reasons why ARC FAVR programs have become popular:
1. Fleet leasing is difficult
The top reasons why companies are moving away from fleet is difficult procurement, maintenance expense, and asset management issues. Fleet also adds risk 24/7 with most accidents outside the work day. Most companies also now have a personal use charge of $100-150 per month which drivers find unattractive.
2. Cents per Mile at the new Fed Rate
65.5 cents per mile is too expensive, the ARC program zeros in on actual geographical cost from the extensive ARC Real Cost Database
3. Many state laws require exact reimbursement rates and ARC provides that data
ARC has created an HR defensible program through industry leading vehicle cost data.
Savings Chart Compared to Federal rate:
AutoReimbursement.com identified the need for a solution that is advantageous to both businesses and employees on the road. Since then, the company has provided a vehicle reimbursement program for businesses that manage some of the key risks and asset management issues associated with company automobiles. "Our reimbursement program offers a non-taxable, fixed and variable plan (FAVR) that is IRS-approved and reduces tax losses. Also, the business has created a sizable database called the Real Cost Database that displays the price of insurance, depreciation, local taxes, and registration costs while benchmarking the cost of operating a vehicle with zip code precision" explains Jim Doherty.
"We noticed that existing applications weren't entirely mobile, making it difficult for mobile employees to work quickly and effectively from any mobile device, be it a smartphone, tablet, or laptop. Even for CEOs and plan managers, ARC is completely mobile. We also identified other problems in the sector, such as confusing reporting and insufficient or missing data. To combat this, our platform gives clients geographic-sensitive benchmarks for the cost of mobile staff vehicles."
"Today we serve many well-known Fortune 500 clients for their mobile employees on the road. We serve many clients, large and small, in over 50 different industries with custom plans tailored to each client's needs. ARC is the only program to provide cost of ownership down to 44,000 zip codes for vehicle depreciation, insurance tax, and registration in the FAVR program," added Jim Doherty.
Reimbursement Plan Management: Trusted by Fortune 500 Companies
The ARC FAVR program moves a company from asset management to financial management. Main plan components include Fixed cost like Insurance, Depreciation and taxes as well as variable costs like maintenance, tires, and fuel. The Real Cost Database focuses on actual costs for reimbursement and gives businesses with fleets of vehicles a choice to abandon asset management, which involves unavoidable risks and costs. Using a non-taxed approach that focuses on geographic cost disparities on each individual driver might result in significant savings for businesses employing a homegrown reimbursement like a taxable allowance or the IRS cents per mile. The program ensures that both parties—the driver and the company—benefit from the reimbursement in terms of the costs associated with the utilization of such vehicles.
The auto-reimbursement program is implemented in a few steps with proof of concept to develop a best in practice program; ARC builds the benchmark vehicle plan for employee reimbursement based on the real-cost database down to 44,000 locations.
Consulting and Compliance
ARC makes sure that the program complies with both organizational goals and IRS FAVR regulations, it develops a policy and a compliance plan. ARC helps employees understand the program through meetings and training on the mobile management tools. The program is strengthened further by ARC RPM (sm), a tool for managing reimbursement plans, which enables staff to update the fully mobile FAVR process and input necessary data from any smartphone, tablet, or laptop. At the end, AutoReimbursement.com determines the employee reimbursement based on the client's selected plan and provides data rich reports on the FAVR program. AutoReimbursement.com ultimately determines the employee reimbursement based on the plan selected by the client, offers reports on the FAVR program developed.
"Our reimbursement plan is similar to a BYOD program, where we allow employees to utilize their vehicles for both personal and professional use cases. Combined with the top data in the industry, ARC targets the best plan for clients and mobile employees. As an exclusive, ARC enjoys having the top data to create FAVR programs within the IRS rules," adds Doherty.
Digitally Transforming the Vehicle Reimbursement Industry
AutoReimbursement.com is the industry leader in terms of expansion. Yet, this expansion is supported by a fantastic vision that is assisting the business in adapting its services as technology advances. The company AutoReimbursement.com went above and beyond. All ARC employees enjoy service enablement through data rich reporting and mobile technology . Users can use any smart device to access every component of the comprehensive software program in the cloud because it is a single, integrated program.
AutoReimbursement.com’s credibility is further bolstered by MileIQ, a mileage tracker with 60K 5-star reviews that allows companies to track their employees’ miles. This feature tracks vehicle mileage data in real-time, avoiding errors resulting from discrepancies that cause overpayments due to inaccurate mileage.
About the Leader
Jim Doherty is the President of AutoReimbursement.com. He has developed FAVR plans with many highly visible companies, large and small, and has routinely documented significant program savings, heightened driver acceptance and satisfaction, and reduced fleet liability with greater control and administrative efficiency. Prior to AutoReimbursement.com, he was a Business Development Consultant at Runzheimer International.
Mr. Doherty holds a Bachelor’s degree in political science and business from Western Illinois University.