Case Study: a major U.S. food and equipment distributor achieves fair, tax-efficient mileage reimbursement with Runzheimer

Finding Savings and Compliance by Combining Multiple Reimbursement Programs

The customer, one of the largest U.S. distributors of food and equipment, faced challenges with an inequitable and non-compliant mix of vehicle reimbursement programs after several acquisitions. They partnered with Runzheimer to consolidate these legacy programs into a fair, transparent, and standardized solution to eliminate tax waste and increase efficiency for their 3,000+ mobile employees.

Runzheimer implemented a non-taxable Fixed and Variable Rate (FAVR) program alongside a cents-per-mile program, utilizing the Equo mileage capture app for simplified reporting. This solution removed tax liabilities, saved time, and ensured IRS compliance. The results included a more than 20% increase in program compliance, nearly 100% of participants qualifying for tax-free reimbursement, and significant cost savings for both the company and its employees.