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Corporate Commute: Keeping Fuel Compensation Cost Effective for Your Business

Employees who drive their own vehicles for business purposes are required by law to be reimbursed for their expenses. The costs of fuel, insurance and wear and tear on an employee's vehicle can be considerable. These four tips will help you to keep fuel compensation cost-effective for your business.


Bonuses for Carpooling

One way to decrease fuel compensation costs to your employees is to award bonuses for carpooling. The owner of the car used for carpooling could be reimbursed at a higher rate per mile than an employee driving on his or her own. The greater level of compensation is justified due to the increased weight of the vehicle and the extra time that it takes to pick up co-workers. As the business owner, you benefit by only having to reimburse one worker instead of several.


Fuel Efficiency

Encourage employees to choose vehicles with the highest possible mileage per gallon of fuel. You might also consider promoting the use of flexible fuel cars or electric cars. Your business could even install an electric car charging station as a way to reimburse employees so that they do not have to charge their electric cars on their own dime. Another important aspect of fuel efficiency is vehicle maintenance. Offer employees who use their personal vehicles for work discounts at local mechanics for routine vehicle maintenance.


Federal Guidelines

You could also consider simply sticking with the federal guidelines on fuel compensation. The General Services Administration of the federal government sets fuel reimbursement rates for federal employees based upon the average price of a gallon of gasoline. Some states stipulate a higher reimbursement rate due to higher regional or local fuel prices. These guidelines are the minimum requirement for fuel compensation for your business.


Safe Driving Classes

Offer free safe driving classes or reimbursement for safe driving classes to your employees. You could also have in-house training on safe and efficient driving. Your fuel compensation costs could decrease by up to 25 percent by encouraging employees to drive at 55 mph or the posted speed limit. Avoiding sudden acceleration and hard braking also reduces gasoline consumption.


Transportation costs are a major part of the overhead for most businesses. Consider working with a respectable dealership like Bay Ridge Nissan to work out any fleet necessities you may have. You can help to keep your fuel compensation costs for employees lower by following these guidelines illustrated here and working with a professional. Many of these tips will also help your employees to lower their own commuting and driving costs and will provide them with a lifetime of safe and fuel-efficient driving knowledge. 

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Tags: business, carpooling, efficiency, fuel


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