If an employee does not need a company car on a daily basis it can be much more advantageous to rent a car. Adding the cost of administration, taxes, service, insurance, and much more, it is very easy to find that hiring a car for an employee on a business trip will be a better option.
So what are the employee entitlements and what will the employee need?
One of the most important information for you, if you are going on a business trip with a car from rental service, is that you have to use the billing information of your company on the contract. Definitely do not rent a car in your name, so as a natural person because the company might have a problem with accounting the invoice with the employee's name. That is the reason why it is important to rent a car under the company name.
The car rental company determines the rental conditions. Better car rentals, which usually operate internationally, will also provide you a toll sticker, service and other additional services in a rental fee. However, the invoice from a car rental company is not included in travel expenses. It is a separate expense that is charged despite the employee's business trip. It is also a tax-deductible expense for the employer.
What next? What else is the employee right?
In the case of business trips, an employee is entitled to reimbursement of travel expenses. Responsibility for the rented vehicles has an employer, but it is never wrong to have liability insurance to avoid wage deductions in the event of an accident. The accidental various riders that cover you can be already included in the rental price. So it is important to know in advance what the car insurance covers and what covers your employee insurance.
After the business trip, the employee charges travel expenses as usual. He/she also charge expenses for the diets and all the other expenses for the fuel. Therefore, the employer bears the expenses for fuel according to the prices during the purchase and according to the traveled kilometers.
If the terms are not agreed differently, the employee has a right to use a rented vehicle only for a certain route of his business trip. His real kilometers are also monitored by the satellite vehicle traffic monitoring system. If the employee will get a fleet card he can definitely use it as in all other circumstances. So it is possible to refuel the car with a fuel card if the fuel card permits. Otherwise, the employee will pay for refueling with his own cash or credit card, or a company credit card or cash advance from the employer. If he uses his own cash to pay for fuel, he must state these costs in the travel expense statement.
There is not a huge difference when the employee goes on a business trip with a company car or with a rented vehicle. On the other hand, the car rental company can provide more favorable terms of service and maintenance. The employee is fully protected in this case and can totally concentrate on his business trip.