You are the manager of accounting for a company that sells computer software packages. You have just received word from the comptroller that there has been a change in the expense allowances for employees using their own cars on business. Previously one rate was applied to all employees, but now there will be different allowance rates for regular and nonregular drivers Effective immediately, regular drivers will receive $1.00 per mile for the first 650 miles driven per month, and 25¢ for each additional mile; nonregular drivers will receive 80¢ per mile for the first 150 miles per month, and 25¢ for each additional mile Regular drivers are those who use their own cars frequently on the job to drive to their sales territories. Nonregular drivers are those employees-such as home-office personnel-who only occasionally use their cars on business. To ensure that these categories are used properly, you have requested that the manager of each department notify Accounts Payable, in writing, which employees in his or her department should be classified as regular drivers. Accounts Payable will reimburse those employees not identified by the letter according to the nonregular driver formula Prepare a memo to communicate this information to all employees.
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