Transportation Allowance Program

Transcription

1 Transprtatin Allwance Prgram Respnsibilities, Prcedures and Guidelines I. INTRODUCTION This manual describes respnsibilities, prcedures and guidelines (including vehicle specificatins and reimbursable expense) and related safety plicy fr all participants in the Varian Medical Systems, Inc. (VMS) Transprtatin Allwance Prgram. II. ELIGIBILITY Field sales and service emplyees whse jb assignments require regular and nging autmbile travel and selected management emplyees may be ffered an assigned cmpany vehicle r a mnthly transprtatin allwance. VMS reserves the right t select fr any emplyee either f these ptins in the cmpany's best interest. An eligibility guideline f 1,000 r mre business miles per mnth is recmmended. The emplyee's immediate supervisr gives final authrizatin fr payment f car allwance t eligible emplyees within the rganizatin. Emplyees in the car allwance prgram are required t cmplete a Vehicle Safety Agreement and Transprtatin Apprval frm (Addendum A2) when entering the prgram. Eligibility is terminated if the emplyee leaves the cmpany, is n leave f absence fr 90 days r mre, r the supervisr determines that it is nt apprpriate fr the emplyee t cntinue in the prgram. The VMS Fleet Department crdinates the administratin f the transprtatin allwance prgram. III. TRANSPORTATION ALLOWANCE - Persnal Vehicle A. Car Allwance Assignment Emplyees chsing a car allwance in lieu f an assigned cmpany car are placed n the

2 allwance plan fr as lng as they cntinue t meet eligibility requirements. The emplyee may terminate participatin in the allwance plan and chse t accept an assigned lease car with standard apprval. The exceptin t this is the emplyee taken ut f the leased car prgram and placed in the allwance prgram. Return t the leased car prgram is subject t apprval by the supervisr and VMS Risk Management. B. Runzheimer Internatinal Plan VMS has cntracted with Runzheimer Internatinal, a cnsulting firm specializing in vehicle expense analyses and business vehicle reimbursement plans. Thrugh the Runzheimer plan, allwance prgram participants will be able t receive an allwance fully tax free prvided certain guidelines required by the IRS are met cncerning age f vehicle, price f vehicle, insurance requirements and minimum mileage. The guidelines are: 1. Business mileage driven per year - must be at least 5, Insurance requirements - must meet VMS insurance requirements listed belw in sectin C. 3. Age f Vehicle - Vehicle can nt be mre than 4 years ld. 4. Price f vehicle - The vehicle driven must have had a price, when new, f at least 90% f the standard VMS fleet vehicle being reimbursed fr under the plan. See Overview f the Runzheimer Car Allwance Plan / Q&A fr this figure. 5. Fr the vehicle yu are being reimbursed fr, the depreciatin methd must be straight line. If all f these criteria are nt met, then the driver can still expect a prtin f the reimbursement as tax free. See Overview f Runzheimer Allwance Plan / Q&A n VMSNet Fleet Management site fr details. The reimbursement cnsists f tw items: 1. A variable rate amunt t cver variable csts f autmbile peratin related t business driving nly. The AVERAGE variable rate ranges frm 12 t 16 cents per business mile driven. 2. Amnthly fixed rate t reimburse plan participants fr wnership related business csts such as insurance, license, registratin, taxes and depreciatin. The AVERAGE fixed amunt ranges frm $400 t $500 per mnth. NOTE: Individual rates can vary substantially based n individual regins and driving patterns.

3 The average reimbursements fr all VMS drivers can als vary ver time. Sme individual fixed and variable amunts culd be lwer than the average ranges listed abve. Runzheimer prvides each driver with an individualized allwance amunt which adequately cmpensates the driver accrdingly fr his r her individual csts which vary by driving pattern regin. See Overview f Runzheimer Car Allwance Plan / Q&A C. VMS Prgram Requirements VMS cmpany plicy requires that all IRS guidelines are cmplied with at all times with nly the fllwing pssible exceptins: The driver may deviate frm 1), 3), 4)and 5) abve. Hwever, the vehicle driven must generally cnfrm with the standard vehicle types ffered as VMS cmpany cars r the vehicle must prject a favrable cmpany image. All deviatins frm 1), 3) and 4) must be apprved by the driver's supervisr and the VMS Fleet Manager. All drivers must cmply with the fllwing insurance requirements at all times (n exceptins): An emplyee must insure a persnally wned r leased car used fr cmpany business. Cst f insurance is included in the cmpany allwance. Minimum insurance requirements, as utlined belw, must be met befre the car allwance may be claimed. Minimum Insurance Requirements Bdily Injury Liability - $100,000 per persn, $300,000 per accident. Prperty Damage Liability - $50,000 per accident. VMS must be named as additinal insured fr liability insurance nly. Any ther cverage required in state f residence r by lease/finance cmpany. Drivers must als carry cmprehensive and cllisin insurance with a maximum deductible f $500 n each cverage.

4 Runzheimer Internatinal ascertains that prper insurance cverage is maintained by the emplyee. D. Terminatin f Allwance When an emplyee terminates, ges n leave f absence greater than 90 days, r is therwise ineligible, the emplyee's supervisr ensures the allwance is nt paid after ineligibility. Allwance payments are resumed with reinstatement f full emplyment status as dcumented by a change f status r written ntificatin frm the emplyee's supervisr. V. GUIDELINES FOR TAX REPORTING (see Addendum D) At the end f the taxable reprting perid (fixed and variable payments that were prcessed frm December thrugh Nvember) Runzheimer will calculate taxable reimbursements. Any imputed incme (if applicable) will be reprted in December pay. T avid being charged 100%, it is yur respnsibility t cmply with the tax free guidelines and t keep adequate lgs r similar recrds which shw time and place f travel, business purpse f the trip, business relatinship f the persn(s) visited and mileage. These recrds shuld be kept with yur persnal tax files. The fllwing are examples f persnal use and business use f bth assigned leased vehicles and designated vehicles under the transprtatin allwance prgram. A. Persnal Use Weekend driving unrelated t business Vacatin driving Cmmute mileage Midday drive away frm ffice slely r primarily fr persnal necessities (e.g., fr persnal banking, persnal mail, medical appintment, etc.) Lan f car t spuses and/r dependents age 21 and ver B. Business Use Driving between hme and airprt fr business trips Overnight business trips Driving frm regular cmpany ffice directly t custmer's premises and back

5 Driving frm regular cmpany ffice t airprt fr business trip Driving frm regular cmpany ffice t business cnference r meeting Driving frm a business call at ne custmer's premises t anther custmer's premises C. Special Rules 1. Where the emplyee has a tax deductible hme ffice, there is n cmmute mileage. All business related driving is 100% business use. 2. Where the emplyee has a regular cmpany ffice, unless the emplyee is n an vernight business trip, business related mileage fr any day must be reduced by the nrmal rund trip cmmute mileage regardless f whether r nt the emplyee stps at the regular cmpany ffice during the day. 3. Where the emplyee has neither a regular cmpany ffice nr a tax deductible hme ffice: a. If the emplyee has a primary metrplitan wrk area, the rund trip distance frm hme t the center f such primary metrplitan wrk area is cnsidered cmmute mileage and nt business mileage. b. If the emplyee has n primary metrplitan wrk area, the first 25 miles a day will be cnsidered cmmute mileage (unless the emplyee is n an vernight business trip). Additinal wrk related mileage will be treated as business mileage. D. Vehicle Mileage Lg Emplyees are respnsible fr retaining adequate lgs t substantiate business use. These lgs must shw: mileage, date f travel, and the business purpse f the trip. VI. DRIVING TO CANADA OR MEXICO Fr authrized travel acrss brders, special insurance requirements are as fllws: Canada A valid insurance identificatin dcument must be carried in the glve cmpartment f the vehicle at all times when traveling in Canada. A cpy f this dcument may be btained frm Wheels. Mexic Travel acrss the Mexican barder requires a cpy f the vehicle title and a ntarized

6 letter f authrizatin frm the Fleet Administratr. Anyne entering Mexic must pay a $35 fee, shw their drivers license and prvide an imprint f a gld credit card (ther than gld is nt accepted by the Mexican authrities). Mexican insurance fr cllisin, cmprehensive, and liability cverage must be btained at the brder fr all VMS assigned vehicles. VMS reimburses emplyees fr this expense when travel is business related. Hwever, persnal travel insurance expense is nt reimbursed. Addendum B Driving Recrd Standard The Risk Management Department peridically checks the driving recrds f emplyees (and their eligible spuses/ dependents) assigned a VMS wned r leased vehicle and emplyees wh are n the allwance prgram. This is dne by reviewing the driving recrds maintained by the Department f Mtr Vehicles r ther gvernment agencies in the state(s) where the VMS emplyee resides. The driving recrd is reviewed fr vilatins that might result in suspensin r revcatin f a license. The pint system used by the Department f Mtr Vehicles f the State f Califrnia is the gverning criteria. All infrmatin is kept in strict cnfidence. N infrmatin will be released unless the general guidelines are exceeded. Addendum C Accident Reprting Prcedures If yu have an Aut Accident While n VMS Business Stp Immediately and take all necessary precautins t prevent further accidents at the scene. Send fr Help. Dn't leave the accident scene. Ask a passing mtrist r sme ther persn t cntact the plice and seek necessary medical assistance. Render All Reasnable Assistance t injured persns. Mvement f injured persn shuld nt be undertaken if likely t cause further injury. D nt admit liability. D nt make a statement f any kind t anyne ther than VMS persnnel r ur claims administratr (Carl Warren and Cmpany) r the plice. Get Names and Cntact Infrmatin fr all Witnesses.

7 Exchange Infrmatin with invlved parties. This is t include name, address, phne number, vehicle license number, year and make f vehicle. Infrmatin exchange cards are in the aut accident kit in the glve cmpartment f yur vehicle. Reprt the accident immediately t yur supervisr. Als reprt t VMS fleet management if this is likely t exceed yur persnal aut liability insurance limits. File An Accident Reprt with the State Gvernment and any ther dcuments if required by law. Failure t reprt an accident can result in driver's license suspensin. Obtain A Cpy f the Plice Reprt and send t yur supervisr. Please als send t VMS Fleet Management if this lss is likely t exceed yur persnal aut liability insurance limits. Addendum D Definitins fr Tax Reprting Cmmute Mileage Rund trip distance between hme and the regular cmpany ffice is cmmute mileage nt business mileage. Eligible Driver Emplyees, legally married husband r wife, dmestic partner and dependents claimed n current tax return 21 years f age and lder. Regular Cmpany Office (Including regular cmpany wrk site.) A cmpany prvided ffice used tw (2) r mre days a week t cnduct substantive business cnstitutes a "regular" cmpany ffice r wrk site. Substantive Business Examples f substantive business are: hlding business discussins with clients, c-wrkers, and supervisrs, preparing and writing reprts r ther similar ffice wrk, r perfrming test r repair wrk. Merely cming t the ffice t pick up mail r supplies, r t deliver rders, prduct returns and reprts is nt cnsidered substantive wrk. Tax Deductible Hme Office A hme ffice is deductible if yu d nt have a regular cmpany ffice and yur hme ffice is yur principal ffice used regularly and exclusively fr substantive business as described abve.

8 Addendum E Cntacts Fr questins r additinal assistance call: Fleet Administratr: Marci Redenbaugh VMS Risk Manager and Fleet Manager: David Cllins Runzheimer Internatinal Business Vehicle Prgram Mileage Phne Number Website Carl Warren and Cmpany (Califrnia) (Other US)