Direct answer
Mileage reimbursement (CPM or FAVR) is better when employees drive variable miles — it scales with actual use. Flat car allowances are simpler but risk underpayment in states like California unless trued up against actual costs.
Quick Answer
Car Allowance vs Mileage Reimbursement: Which Is Better?
Mileage reimbursement (CPM or FAVR) is better when employees drive variable miles — it scales with actual use. Flat car allowances are simpler but risk underpayment in states like California unless trued up against actual costs.
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