Fixed and Variable Rate (FAVR) Reimbursement

FAVR: Personalized, tax-free reimbursements

Make reimbursement a cost-controlled strategy: location-specific rates, 100% tax-free, and built-in compliance.

Costs vary by driver. Pay what’s accurate.

Fair, accurate, tax-free reimbursement rates based on where drivers live and how frequently they drive.

Is FAVR right for my business?

See when FAVR is the right approach.

I want 100% tax-free reimbursements

FAVR is the only way to reimburse tax-free above the IRS standard mileage rate, helping maximize employee take-home.

I want to reimburse employees for actual costs of owning
and operating a vehicle

Motus applies IRS guidance for fixed and variable costs, delivering accurate reimbursements grounded in  real-world data.

I want to provide fair reimbursements that consider the variable costs based on employee location

Motus’ proprietary rate engine delivers precise, reliable rates that reflect true driving costs for where employees live.

I have employees driving over 5,000 miles annually

Reimbursement is 100% tax-free if an employee drives 5,000+ miles annually.

Doesn’t sound like your business?

See if Cents-Per-Mile (CPM) reimbursement could work better. →

The Motus difference

Capture

Calculate

Approve

Pay

Traditional fleet
programs

Limited visibility into when and how vehicles are used. Company vehicles often blur personal and business use, creating continuous risk exposure.

Total cost of ownership is often unclear due to hidden expenses and misuse, such as uncovered repairs, personal driving, or fuel card abuse.

Heavy administrative burden across maintenance, safety, and risk management drives operational costs.

Rigid lease terms reduce flexibility, limiting your ability to scale up or down.

Traditional
mileage
reimbursement
programs

Employees manually enter mileage in an expense platform, spending up to 26 hours per year reporting trips.

Using averages for rates means some employees are underpaid, while others are overpaid.

Limited visibility into mileage costs and field activity. Approvers have few tools to audit trips or spot waste.

Reimbursement amounts feel random and have no data to guide optimization.

FAVR program
with Motus

Mobile driver app automatically captures and logs trips. IRS-compliant mileage logs are automatically generated.

Tax-free reimbursements are automatically calculated. Rates are location- and role-specific to ensure fair, geographically sensitive payments.

Reimbursement and reporting happen all in one place, providing centralized visibility into spend, field activity, and waste.

Accurate payments delivered via payroll, direct deposit, or Concur.

Calculate your potential savings

Employee driving comes with hidden costs that can be hard to identify. Find out what transitioning to  FAVR could save you.

Explore our other solutions

What sets us apart — and drives real results

AI advantage

In-app AI trip classification to save time  for drivers and admins

Learn more about AI →

Powerful analytics

Advanced analytics with targeted audit views and anomaly detection to reduce waste and abuse

Learn more about Insights Pro →

Built-in protection

Powerful safety and risk mitigation tools that directly integrate into your vehicle program

Learn more about Motus Protect →

Growth support

Scalable solutions for small and  growing businesses

Learn more about Everlance Business →

Trusted by enterprises across all industries

CASE STUDIES

Switching to FAVR with
Motus saved Amoskeag Beverages over $5,000 per employee, per year.

learn more →

Let’s map out your best driving program yet

We’ll help you uncover hidden costs, unlock savings, and build a vehicle program  that works better for your business — and your people.

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