BOSTON--(BUSINESS WIRE)--Motus, the definitive leader in reimbursement solutions for businesses with mobile-enabled workforces, today announced the launch of Motus Reimburse for Mobile Devices. This first-of-its-kind solution makes it possible for companies to easily and accurately reimburse employees for the business use of personally-owned mobile devices.
As the world’s foremost experts on reimbursement, Motus developed the Fixed and Variable Rate (FAVR) reimbursement methodology. After the Internal Revenue Service (IRS) recognized FAVR as a tax-free reimbursement option in 1992, Motus used it to transform how companies reimburse employees for personal vehicle use. Before FAVR, employees had limited reimbursement options: either a flat monthly amount/allowance or mileage reimbursement at the IRS Safe Harbor rate, which often over-reimburses high mileage drivers. FAVR made it possible to reimburse based on local costs where each employee drives – fairly, accurately and compliantly. In fact, the Motus expertise is so deep, it underpins the annual IRS business mileage standard.
Now, Motus applies its unrivaled experience and application of the IRS FAVR methodology to a new mixed-use asset class: mobile devices. While a fraction of mobile-enabled workers drive vehicles as part of their jobs, nearly all employees use their mobile devices, creating a significant opportunity for companies to begin accurately and fairly reimbursing employees for business use of their personal devices. Motus makes this possible by combining its industry-leading reimbursement platform with a robust dataset of device costs, carrier spend, data plans and analytics gained from the company’s recent acquisition of Wireless Analytics.
“Fairly and accurately reimbursing employees for the business use of personal assets has never been more important as lawmakers, end users and others are focused on ensuring compliant reimbursement programs,” said Craig Powell, CEO of Motus. “We know that the accurate application of the IRS FAVR code is incredibly powerful for reimbursing employees for the business use of their personal vehicles. It now only makes sense to apply this same code to the rapidly growing mixed-use asset class of mobile devices. Our objective is to ensure fair, accurate and compliant reimbursement programs.”
As employee reliance on mobile devices expands, organizations must streamline reimbursements as employees balance work and personal life in today’s “always-on” world. The benefits of the FAVR-based Motus Reimburse for Mobile Devices solution include:
- Accuracy – Instead of a one-size-fits-all approach where all mobile expenses are paid or a flat stipend is given, FAVR enables the actual, localized costs of owning and using a device to be reimbursed.
- Fairness – Accounting for the true costs and use of a mobile device means employees aren’t over or under-reimbursed.
- Choice – Employees want to choose how they work and what device they work with. A FAVR-based reimbursement program is device and carrier agnostic and empowers employee choice.
- Compliance – Organizations often face legal action over inaccurate expense reimbursement – and lawsuits have begun to include disputes over accurate mobile device reimbursement. With Motus Reimburse for Mobile Devices, organizations are provided with a defensible record of use and reimbursement.
“Our research shows that only half of organizations reimburse for device-related expenses,” added Todd Gebski, Chief Strategy Officer at Motus. “Further, an overwhelming majority of those that do reimburse offer a flat stipend instead of reimbursing employees based on the costs they incur and the amount they use the device for business. Reimbursing all employees the same amount is rarely defensible – and with ever-evolving labor laws, organizations could be assuming unintended risk.”
Motus will soon release research into trends affecting the way people work and how the adoption, usage and success of mobile programs is propelling those trends. Stay tuned to https://www.motus.com/news/ for more information on this research as it is completed.
Motus is the definitive leader in solutions for businesses with mobile-enabled workers and fleets of any size. The Motus technology platform simplifies both mileage and mobile device reimbursement with proprietary software that calculates personalized and compliant reimbursements for each employee, while improving employee productivity and reducing the overall costs of mobility. The company’s deep insights, captured across the world’s largest retained pool of drivers, also underpins the annual Internal Revenue Service (IRS) business mileage standard, the amount an individual can deduct for business vehicle expenses. For more information please visit www.motus.com or connect with us on Twitter, Facebook, Instagram or LinkedIn.