Category: Special Topics
Field of Study: Specialized Knowledge and Applications
Audience: HR Managers, HR Generalists
Level of Difficulty: Intermediate
Delivery Method: Self-Study
Some college level courses with moderate algebraic training
This course deals with one of the lesser known ways in which organizations can reimburse employees for the business use of their automobiles. This method provides a safe harbor that allows the organization to pay more than the statutory standard mileage rate. When local geographic driving conditions and costs are more than the standard mileage rates, a FAVR allowance may replace the standard mileage rate. This course describes the process of establishing a FAVR program and looks at alternative (and perhaps easier) methods of providing automobile allowances.
- Describe the advantages of the actual expense and standard mileage methods
- Explain the key elements in creating an organization’s FAVR analysis
- Detail the documentation and communication required by FAVR plans
- Understand the appropriate IRS tax codes
*The Course Credit Map
displays credit types offered by location and corresponding lists of eligible courses.