“𝗪𝗲 𝗰𝗮𝗹𝗹 𝗶𝘁 𝘁𝗵𝗲 𝗴𝗿𝗮𝘆 𝗳𝗹𝗲𝗲𝘁.” 🛻 That’s how Jeff Condron describes a fleet of cars owned by the employees of a company. While fleet management for company-owned fleets is highly regulated, there are blindspots when employees bring personal vehicles to work. That’s why these fleets are in the gray area, or “gray fleets.” There don’t exist a lot of technology or systems to enforce policies around gray fleets. But it’s also simply sometimes a lack of education. People don’t know what the risks are, and don’t consider their employee-owned fleets high risk. But there are significant insurance risks: an accident occurring during business hours, even in an employee-owned vehicle, could have their employer liable. Drivers might not be covered by their employer’s insurance policies, and their personal insurance might not have adequate coverage. But there are solutions to all of this. In partnership with SambaSafety, leading driver safety data provider, Cardata offers motor vehicle record (MVR) checks and specialized driver safety training to help employees and employers drive safely for work, while minimizing risk. So drive safe! #DriverSafety #MVRs #CarInsurance #FAVR #GrayFleets From The Key with Lee Adam
Cardata
Software Development
Boston, Massachusetts 11,342 followers
A fully-managed vehicle reimbursement solution for businesses whose employees use their personal cars for work.
About us
Founded by fleet management leaders in 1999, Cardata is the fully-managed vehicle reimbursement partner for field teams. Cardata collaborates with businesses by pairing easy-to-use technology and industry leading expertise to design the simplest and most cost-effective solutions for work-related driving. As a leading SaaS partner for employee-owned fleets, Cardata’s suite includes reimbursement software, IRS compliant tax-free programs, and business intelligence tools. This comprehensive approach reduces liability, lightens administrative burden, and generates average cost savings of over 30% when compared to traditional company cars or taxable allowances. Cardata is driving what matters to their partners by adopting a data-driven approach to reimbursement, co-creating solutions that align with customer goals while ensuring operational efficiencies. Programs include Fixed & Variable Rate Reimbursement, Tax-Free Car Allowance, and Cents per Mile. Could your field team be using their personal cars for work? Reach out to see how you can optimize your program. Visit cardata.co to learn more.
- Website
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https://www.cardata.co/
External link for Cardata
- Industry
- Software Development
- Company size
- 51-200 employees
- Headquarters
- Boston, Massachusetts
- Type
- Privately Held
- Founded
- 1999
- Specialties
- SaaS, FAVR, Mileage Tracking App, Company Car, Mileage Reimbursement, Fixed and Variable Rate, Cloud, Reimburse mileage, Fleet, Car Allowance, and Vehicles
Products
![Click here to view Cardata]()
Cardata
Expense Management Software
We administer Fixed and Variable Rate Reimbursements ("FAVR") and Cents per Mile ("CPM") programs through a proprietary reimbursement software.
Locations
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Primary
Get directions
Boston, Massachusetts, US
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Get directions
207 Queens Quay W
#400,
Toronto, Ontario M5J 1A7, CA
Employees at Cardata
Updates
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Flat rate car allowances fail drivers because they're unfair. A $500 car allowance doesn't mean the same thing to two drivers in two different states, or even drivers in rural versus urban areas. From gas to insurance, the cost of driving varies widely across regions—so the value of a vehicle reimbursement should too.
𝗗𝗿𝗶𝘃𝗶𝗻𝗴 𝗱𝗼𝗲𝘀𝗻’𝘁 𝗰𝗼𝘀𝘁 𝘁𝗵𝗲 𝘀𝗮𝗺𝗲 𝗲𝘃𝗲𝗿𝘆𝘄𝗵𝗲𝗿𝗲. Gas in some states can be almost twice as expensive as in others. Plus, gas is a primary determinant of total vehicle expenses. Other costs, like insurance, are regionally-sensitive too. But if you give your whole team a flat-rate allowance, drivers in Texas the same sum as drivers in California, some people are going to come up short. $500 a month doesn’t mean the same thing to two people, one of whose gas bills is twice the price. See this short clip below of a recent podcast I did explaining these issues. #fairreimbursement #Cardata #podcast #allowance
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Industry patterns are shifting. Companies are starting to question whether their fleet of company cars is the best option for their business and their team. Reimbursement programs for employee personal vehicles are the option they're turning to. The cost saving and risk reduction benefits are obvious, but there are added employee perks too from making the switch. Griffen and Lee Adam break it down.
Why are companies abandoning their fleets of company cars? 🏃♀️ The landscape of work is changing, and businesses are questioning the viability and sustainability of their fleet programs. As inflation continues to put cost-saving pressure on business finances, decision-makers are forced to evaluate costs and innovate. There is simply too much risk, cost, and administrative burden to bear with fleet programs. There are an abundance of alternative vehicle program options out there, including those that leverage employees’ personal vehicles. Employee satisfaction and financial ease are not mutually exclusive: tax-free personal vehicle reimbursements make this dream a reality. ⭐ #Fleet #VehicleReimbursementProgram #Cardata #CompanyCars
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Employees are asking for more transparency from their workplaces and the tools they use 💡 Our Director of People and Culture, Lindsay Clayborne, CHRP presented at #SHRM in #Chicago last week about just this—how transparency can be achieved through integrated company-wide tech solutions. Her presentation underscored how you can use technology to: • improve transparency 📈 • build stronger relationships 🤝 • seamlessly implement programs 👩💻 • increase employee satisfaction and retention 🙌 Cardata takes a five-step approach that can be adapted by any SaaS provider to enhance transparency ⬇ 1. Helping customers set internal policies that govern programs 2. Providing real time breakdowns of program calculations—in our case, vehicle reimbursement rates—to the people they pertain to 3. Making timelines for different program processes visible to all stakeholders, so people know what to expect and when 4. Letting employees customize the tools they use to respect their privacy and achieve their employment goals 5. Providing customers with access to subject matter experts whenever they have questions These are some of the ways we build transparency into our software and our process, and help our customers do the same! 👏 How do you leverage tech to make the employee experience more transparent?
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Paul Turcotte shares a really helpful graphic from the Social Security Administration, and discusses the impact of FICA taxes on flat rate car allowances. When you don't have solid accounting practices for your car allowances, they're treated like income and FICA taxes come off. But there's a better way; use an IRS-compliant vehicle reimbursement program, like: • Cents per Mile • 463 Accountable Allowance • Fixed and Variable Rate (FAVR)
𝗜𝘁’𝘀 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝗶𝗻𝗰𝗼𝗺𝗲 𝘁𝗮𝘅 𝘆𝗼𝘂 𝗹𝗼𝘀𝗲 𝗳𝗿𝗼𝗺 𝗰𝗮𝗿 𝗮𝗹𝗹𝗼𝘄𝗮𝗻𝗰𝗲𝘀, 𝗽𝗮𝘆𝗿𝗼𝗹𝗹 𝘁𝗮𝘅𝗲𝘀 𝗴𝗲𝘁 𝘁𝗮𝗸𝗲𝗻 𝗼𝗳𝗳 𝘁𝗼𝗼. But what goes into payroll tax? And what is “FICA”? FICA stands for “Federal Insurance Contributions Act.” It’s the primary federal payroll tax. FICA helps fund medicare programs and social security, helping retirees, individuals with disabilities and children. FICA funds some really helpful programs, but it is a nuisance when it’s taken off car allowance, because car allowances are supposed to be tax-free reimbursements. When you’re paying FICA taxes on car allowance, you’re losing up to 15.3% of the total value: 7.65% on the employer side, and 7.65% on the employee side. Although this tax is very helpful for individuals and the economy it shouldn’t come off of deductible reimbursements. This is where a tax-free car program can come into play. The IRS has created programs that allow for tax-free reimbursements for employee vehicles. You can get programs like: • Cents per Mile • Tax-Free Car Allowance (IRS 463 Accountable Allowance) • Fixed and Variable Rate (FAVR) And all of these programs allow you to take the FICA tax off your car allowances, and drive tax-free. See the graphic below to learn more about FICA tax. #Cardata #CarAllowance #SocialSecurity #Medicare #FICA #PayrollTax #Taxes Graphic provided by: Social Security Administration
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#SHRM24 is only a few days away! Catch Lindsay Clayborne, CHRP's presentation in the HR Solutions Theatre on June 24th at 2:15- 2:45pm CST, and don't forget to stop by booth 522 to meet our team! See you in the windy city! 💨
Join us at the SHRM Annual Conference on June 24th for an insightful session led by our Director of People and Culture, Lindsay Clayborne, CHRP! At 2:15pm CST in the HR Solutions Theatre, Lindsay will explore how leveraging technology can revolutionize transparency and build trust within your organization. Don't miss this opportunity to gain valuable insights and connect with fellow HR professionals from around the world 🤝 See you in Chicago!
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When you have a car allowance, and you don't account for the mileage and expenses, you pay tax on that allowance, just like income. Whatever your tax rate is, that's what you pay in income tax. A lot of sales reps are losing 22 of 24% of their car allowance to taxes — to say nothing of FICA contributions. But they don't need to: there are tax-free car allowances, because driving a personal car for work is a deductible expense. All you need are some solid data collection and accounting practices, and you save all the income tax, plus all the payroll tax.
Most of us know the feeling of looking at a paycheck and comparing the gross pay compared to the net pay. Not a fun feeling when almost a quarter of your paycheck is lost to income tax (Fig.1). The question you should be asking yourself next is: “Are all my payouts taxable?” If you are receiving vehicle allowance the answer is most likely no! When given a car allowance on a paycheck chances are you’re getting taxed at your current income tax rate for the allowance. This means you are losing your income tax rate on what is supposed to be a tax-free reimbursement. Lucky for you it doesn't have to be this way. The IRS has created tax-free vehicle reimbursement programs for employers to allow employees who drive personal vehicles for work to get reimbursed without the burden of income tax. There are three main programs that allow employees to get their reimbursements tax-free: CPM (Cents per Mile) TFCA/463 (Tax-Free Car Allowance/Publication 463 Accountable Allowance) FAVR (Fixed and Variable Rate) These programs all have pros and cons that are applicable to certain driving roles. Depending on what kind of driving applies to your business, a certain program will fit your company best. But whichever program you go with, your reimbursements don’t have to be taxed. There are programs that are setup by the IRS to honor the fact that reimbursements are tax-free business expenses. Talk to your employer today or visit Cardata to learn more Fig.1 - U.S. Single income tax rates 2024
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