FAVR Mileage Reimbursement Simplified: Benefits and Savings

SAP Concur blog introduces the FAVR (Fixed and Variable Rate) mileage reimbursement model as an alternative to traditional cents-per-mile, car allowance, and fleet vehicles. Designed for employees driving at least 5,000 miles annually, FAVR includes fixed costs (license, taxes/depreciation, insurance) and variable costs (maintenance, fuel, tire wear), calculated based on actual costs, more equitable and IRS-compliant with no tax burden. SAP Concur FAVR by Motus automates calculations and integrates with Concur Expense.