Financial Car Policy

FINANCIAL CAR POLICY

Parties and Effective Date

Company Name:    Company Address:

Employee Name:    Employee ID:

Job Title:    Effective Date:

Vehicle Assignment (if applicable)

Vehicle Make:    Model:    Year:

VIN:    License Plate:

Odometer at Assignment:

Allowance, Reimbursement and Tax Treatment

Monthly Car Allowance Amount:    Payment Frequency:

The parties acknowledge that the allowance constitutes compensation subject to payroll withholding where required by law.

Tax Withholding:   The allowance is treated as taxable wages and subject to withholding and reporting.

Mileage and Expense Reimbursement

Standard Mileage Reimbursement Rate: per mile

Monthly Mileage Allowance (if applicable): miles

Fuel Reimbursement: Receipts required. Company reimburses fuel purchases when supported by an approved mileage log and receipts. Maximum per-incident fuel reimbursement:

Maintenance and Repair Reimbursement: Repairs require pre-approval except emergency repairs to render vehicle safe. Per-incident approval threshold:

Insurance, Liability and Deductibles

Insurance Provided by Company:   Company maintains liability insurance for authorized business use in accordance with policy limits.

If employee uses a personal vehicle for company business, employee must maintain minimum insurance limits: Bodily Injury/Property Damage combined per occurrence:

Deductible Responsibility: Employee is responsible for deductible up to: unless loss results from company negligence.

Accident, Traffic Violations and Fines

Employee must immediately report any accident or traffic violation arising from business or personal use of assigned vehicle to the Company Risk Manager and local law enforcement as required. Report to Company within days of occurrence.

Responsibility for fines and penalties:

Expense Reporting and Documentation

Mileage logs must include date, origin, destination, purpose, start and end odometer readings, and total miles. Employee certifies accuracy with each reimbursement request.

Reimbursement submission deadline: days from expense date. Late submissions may be denied.

Repayment, Termination and Recovery

On termination of employment or revocation of vehicle privileges, employee shall repay unearned allowance and company-paid expenses as required. The repayment amount will be prorated to the effective termination date calculated as follows:

Company may recover sums due from final wages to the extent permitted by law. Employee consents to such recovery where lawful.

Audit, Compliance and Discipline

Company reserves the right to audit mileage logs, receipts and vehicle records. Material misstatement or falsification constitutes misconduct and may result in disciplinary action up to termination and restitution.

Audit Authorization:   Employee acknowledges audit and compliance reviews.

Governing Law, Amendment and Severability

This policy is governed by the laws of the state listed below. Any amendment must be in writing and signed by an authorized company representative. If any provision is found unenforceable, remaining provisions remain in effect.

Governing State:

Acknowledgment and Certification

By signing below, the employee acknowledges receipt of this Financial Car Policy, certifies that all information supplied in connection with vehicle use and reimbursement is true and complete, and agrees to comply with the policy terms. Employee understands that violation may result in corrective action, up to and including termination and financial recovery.

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