Company cars and taxable benefit

Keep company cars compliant, without the admin

A company car is a perk for your team and a reporting job for you. Driversnote tracks every trip and sorts it into business or personal, so you're ready if the IRS asks.

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A yearly Driversnote mileage report for a company car: the summary splits 9,840 business (68%) and 4,630 personal (32%) miles, and each trip has its odometer readings, trip data to support the taxable benefit
A donut chart splitting a company car's miles into 68% business and 32% personal, classified automatically from working hours and saved locations

Personal use tax

Show the split, or the whole car is taxable

Without a mileage log, the IRS treats every mile as personal. That can mean back taxes and extra payroll tax for your business, and a tax adjustment for your employee.

Business use only? No personal-use tax at all
Some personal driving? That part is taxable income, unless the employee pays you back
Commuting? Usually taxable, unless a specific policy applies

Stay compliant by logging trips as they happen

Business or personal, labeled for you

Driversnote labels every trip from your working hours, or you can do it with a tap. It's the split employees must prove and employers must calculate.

One dashboard, every driver

Manage every driver from one dashboard, keep logs as long as you need them, and see exactly what each employee owes back for personal use.

IRS-compliant mileage logs

If you're audited, every log has what the IRS asks for: dates, times, purpose and odometer readings.
A trip being tracked in the Driversnote app from the office, classified as Business, with Personal one tap away

Trip classification

Every trip gets the right label, business or personal

That split is what lets you prove how each company car is used and work out what's owed back for personal miles.

Trips are classified automatically from your working hours
Relabel any trip in seconds, right from the trip list
Frequent addresses are saved, so repeat trips label themselves
The January page of a company car mileage report, listing each trip with its date, start and end address, purpose, odometer reading at the start and end, and distance, with personal trip addresses hidden

Tax reporting

Reports that are ready when the IRS asks

The IRS expects the business to keep the log, and without one all use is taxable. Logging as trips happen means there's nothing to piece together later.

Reports for any period, formatted to IRS standards, with odometer readings on every trip
The business/personal split and odometer readings Finance or your accountant need to work out the taxable value, whichever method you use: Annual Lease Value, cents-per-mile or the commuting rule
Every log is recorded as the trip happens, with a full edit history for audits
A car driving a trip on a road map that Driversnote auto-tracks and logs, with iBeacon, start and stop, and adding trips manually as other ways to log trips

Automatic tracking

Trips log themselves

Every trip is recorded as it happens, not reconstructed later, so drivers have nothing to remember and you have less to double-check.

Auto-tracking runs in the background, with no buttons to press
Add an iBeacon for even higher accuracy, with fewer false starts and stops
Every trip is saved with the date, distance and locations the IRS requires

Prove how your company cars are used

Automatic tracking

Every trip logged via GPS or iBeacon, no manual entry.

Approve in seconds

Review and approve driver logs from one dashboard.

See the percentage split

You can always see the split between business and private miles.

Audit-ready exports

One-click PDF or Excel reports, with a full edit log.

Privacy controls

Personal trip details stay hidden from admins.

Get your company car mileage in order

Start for free and see how Driversnote tracks every trip, sorts business from personal and builds the reports you need when the IRS asks.

An illustrated mileage policy with the choices that shape it: vehicles, mileage rate, reporting period and report details

Get set up right

Make sure you have the right program for your fleet

We'll help you tailor Driversnote to your exact needs.

Company cars, personal vehicles or a mix of both
Standard IRS rates or your own reimbursement rates
A mileage policy that supports your organization's goals

Frequently asked questions

Only if it's used for anything other than business. Personal use of a company car, including the regular commute, is a taxable fringe benefit under IRS rules and must be added to the employee's W-2 income. If the car is used strictly for business, or the employee fully reimburses you for the personal miles, there's no additional tax.

The IRS defaults to treating 100% of the vehicle's use as personal. That triggers back taxes and retroactive employer FICA/FUTA payroll taxes, plus interest and penalties, on top of a surprise W-2 tax adjustment for the employee.

If an employer requires an employee to take a company car home but bans all other personal use, the commute can be valued at a flat $1.50 per one-way trip ($3.00 round trip) instead of the more expensive lease-value method. It requires a written policy, and it isn't available to "control employees" (officers, directors, 1% owners or high earners).

Yes. Driversnote logs every trip automatically and lets you classify it as business or personal, giving you the records the IRS requires, kept as trips happen, no matter which valuation method you use.

Keep your company car mileage in good order

Track trips automatically, classify them in a tap, and export IRS-ready reports whenever you need them.

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