Rightsizing Personal Use Contributions Drives Huge Decline in Driver Overcharges

Not all costs are immediate 

Smart businesses know that if details are not managed attentively, it can be costly to morale. This global chemical and ingredients distributor identified just such a danger. They had been routinely collecting a bi-weekly $75 Personal Use Contribution (PUC) from its drivers to be used as an offset to their year-end taxable benefit. The client realized that for some, the PUC deduction was more than their calculated annual taxable benefit. This resulted in inequity for those drivers compared to others. The company set out to remedy the situation. 

Turning the decision into action 

To ensure that all drivers’ contributions accurately reflected the miles they drove, the company leveraged the Wheels Mileage Collection program. Aligned with the company’s $75 per paycheck ($150 monthly) Personal Use Contribution (PUC), a maximum quarterly driver contribution of $450 was established, with any overage treated by the company’s payroll as imputed income. A series of driver training sessions were held to explain the new process. 

Change made; hazard averted 

Starting in May 2021, drivers reported their mileage based on actual personal miles reported for the quarter and were collected via the Wheels Mileage Collection process. Wheels furnished the client with the final taxable benefit report for the quarter, allowing the company’s payroll to impute the income for any drivers whose taxable benefit exceeded their $450 quarterly contribution. This changeover brought an end to overcharges for a stunning 63% of company drivers—and showed them vivid proof of the company’s dedication to fairness.