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Learn and Know IP Addresses, Subnetting,and VLSM

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IP Address

IP Address is the address assigned to the network and network equipment that uses the TCP/IP protocol. The IP address consists of 32 bits (biary digits or double numbers) binary numbers which are divided into 4 ockets (bytes) consisting of 8 bits. Each bit represents a decimal number ranging from 0 to 255.

The types of IP addresses consist of:

  1. Public IP

Highest public bit range address bit network address
class A 0 0 – 127* 8
class B 10 128 – 191 16
class C 110 192 – 223 24
class D 1110 224 – 239 28

  1. Private

This Private IP can be used freely but is not recognized on the global internet network. Because it is usually used on closed networks that are not connected to the internet, such as ATM computer networks.

10.0.0.0 – 10.255.255.255
172.16.0.0 – 172.31.255.255
192.168.0.0 – 192.168.255.255

Conclusion
1.0.0.0 – 126.0.0.0 : Class A.
127.0.0.0 : Loopback network.
128.0.0.0 – 191.255.0.0 : Class B.
192.0.0.0 – 223.255.255.0 : Class C.
224.0.0.0 = 240.0.0.0 : Class E, reserved.
3. IPv6
consists of 16 octets, for example:
A524:72D3:2C80:DD02:0029:EC7A:002B:EA73

 

Subnetting

A Network Administrator often requires network sharing from an IP Address that has been assigned by the Internet Service Provider (ISP). This is because the supply of IP addresses is currently very limited due to the proliferation of sites on the internet. The way to divide the network is called subneting and the result of subneting is called subnetwork. The steps for subnetting are as follows:

Example 2:
A company gets an IP address from an ISP 160.100.0.0/16, the company has 30 departments in total, and wants all departments to have access to the internet. Determine the network for each department?

Solution ;
1. Determine which class the IP is in? B
2. How many networks are needed?
with the formula 2n > network needed
25 > 30
3. Convert to binary

network-portion host-portion
10100000 01100100 00000000 00000000
11111111 11111111 00000000 00000000

  1. Take the host-portion bit according to the network needs, so that

network-portion host-portion
10100000 01100100 _ _ _ _ _ 000 00000000
11111111 11111111 1 1 1 1 1 000 00000000

note the third octet
_ _ _ _ _ 000
1 1 1 1 1 000

Method 1

By combining bits

00001 000 = 8
00010 000 = 16
00011 000 = 24
00100 000 = 32
00101 000 = 40
00110 000 = 48
……………
11111 000 = 248

Method 2
Reduce the subnet mask by 256

11111 000 = 248

256 – 248 = 8 then the subnetwork is a multiple of 8

No. Department of Subnetwork (255.255.248.0)
1 First 160.100.8.0
2 Second 160.100.16.0
3 Third 160.100.24.0
4 Fourth 160.100.32.0
5 Fifth 160.100.40.0
6 Sixth 160.100.48.0
7 Seventh 160.100.56.0
.. ………….
30 Thirty 160.100.248.0
Then

Network Broadcast Range-Hoat
160.100.8.0 160.100.15.255 160.100.8.1 – 160.100.15.254
160.100.16.0 160.100.23.255 160.100.16.1 – 160.100.23.254
160.100.24.0 160.100.31.255 160.100.24.1 – 160.100.31.254
160.100.32.0 160.100.39.255 160.100.31.254 160.100.32.0 160.100.39.255 160.100.32.1 – 160.100.39.254
160.100.40.0 160.100.47.255 160.100.40.1 – 160.100.47.254
160.100.48.0 160.100.55.255 160.100.48.1 – 160.100.55.254
160.100.56.0 160.100.63.255 160.100.56.1 – 160.100.63.254
160.100.64.0 160 100 .71.255 160.100.64.1 – 160.100.71.254
160.100.72.0 160.100.79.255 160.100.72.1 – 160.100.79.254
…… .. ………. ………….

160.100.248.0 160.100.255.255 160.100.248.1 – 160.100.255.254

VLSM (Variable Leg Subnet Mask)

The concept of subneting is indeed a solution in overcoming the number of IP addresses used. However, if you pay attention, there will be many subnets. More detailed explanation in the example:

Example 2:
A company that has 6 departments wants to divide its network, including:
1. Department A = 100 hosts
2. Department B = 57 hosts
3. Department C = 325 hosts
4. Department D = 9 hosts
5. Department E = 500 hosts
6. Department F = 25 hosts

IP Address given from ISP is 160.100.0.0/16

If we use ordinary subneting it will be easy to get but the results of subneting (such as example 1) will be wasted because the results of subneting are too many than the required number of hosts. Then we need VLSM calculations, namely:

  1. Sort by required hosts
    1. Department E = 500 hosts
    2. Department C = 325 hosts
    3. Department A = 100 hosts
    4. Department B = 57 hosts
    5. Department F = 25 hosts
    6. Department D = 9 hosts
  2. Convert to binary

network-portion host-portion
10100000 01100100 00000000 00000000
11111111 11111111 00000000 00000000
If the subneting is taken from the network then the VLSM is taken from the host

l For 500 hosts
network-portion host-portion
10100000 01100100 00000000 00000000
11111111 11111111 00000000 00000000

For 500 hosts, 9 bits are taken from the host-portion because
2n-2 > number of hosts

The result is 160.100.0.0/23

Network Broadcast Range-Hoat
160.100.0.0/23 160.100.0.255 160.100.0.1 – 160.100.1.254
160.100.2.0/23 160.100.2.255 160.100.2.1 – 160.100.3.254
160.100.4.0/23 160.100.4.255 160.100.4.1 – 160.100.5.254
160.100.6.0/23 160.100.6.255 160.100.6.1 – 160.100.7.254
160.100.8.0/23 160.100.8.255 160.100.8.1 – 160.100.9.254
…….. ………. ………….
160.100.254.0/23 160.100.254.255 160.100.254.1 – 160.100.255.254

l For 325 hosts we can still use a subnet of 500 hosts because it is still in arena 29 and choose an unused subnet.
l For 100 hosts use 28 > 100 and take one of the previously unused subnets.
e.g. 160.100.2.0/24

network-portion host-portion
10100000 01100100 00000010 00000000
11111111 11111111 00000010 00000000

then
Network Broadcast Range-Hoat
160.100.2.0/24 160.100.2.255 160.100.2.1 – 160.100.2.254
160.100.3.0/24 160.100.3.255 160.100.3.1 – 160.100.3.254

l For 57 hosts use 26 >57 and take one of the previously unused subnets.
e.g. 160.100.3.0/24

network-portion host-portion
10100000 01100100 00000010 00000000
11111111 11111111 00000011 00000000

then
Network Broadcast Range-Hoat
160.100.3.0/26 160.100.3.91 160.100.3.1 – 160.100.3.90
160.100.3.64/26 160.100.3.63 160.100.3.65 – 160.100.3.126
160.100.3.128/26 160.100.3.127 160.100.3.129 – 160 100. 3.190
160.100.3.192/26 160.100.3.191 160.100.3.193 – 160.100.3.254

l For 25 hosts use 25 > 25 and take one of the previously unused subnets.
e.g. 160.100.3.192/25

network-portion host-portion
10100000 01100100 00000010 00000000
11111111 11111111 00000011 00000000
then

Network Broadcast Range-Hoat
160.100.3.192/27 160.100.3.223 160.100.3.193 – 160.100.3.222
160.100.3.224/27 160.100.3.255 160.100.3.225 – 160.100.3.254

l For 9 hosts use 24 > 16 and take one of the previously unused subnets.
e.g. 160.100.3.224/25

network-portion host-portion
10100000 01100100 00000010 00000000
11111111 11111111 00000011 00000000

then
Network Broadcast Range-Hoat
160.100.3.224/28 160.100.3.239 160.100.3.225 – 160.100.3.227
160.100.3.240/28 160.100.3.255 160.100.3.241 – 160.100.3.254

 

SUBNETTING ON IP ADDRESS CLASS B

First, the subnet mask that can be used for subnetting class B is as below. I deliberately separated it into two, the left and right blocks because each has a different technique, especially for the octet that is “played” based on the subnet block. The CIDR /17 to /24 method is exactly the same as the Class C subnetting, only the subnet blocks are inserted directly into the third octet, not like Class C is “played” in the fourth octet. While the CIDR /25 to /30 (multiple) of the subnet block we “play” in the fourth octet, but after the third octet is finished, we move forward (coeunter) from 0, 1, 2, 3, and so on.

Now let’s try two questions for both subnetting techniques for Class B. We start from using a subnetmask with a CIDR of /17 to /24. Example network address 172.16.0.0/18.

Analysis: 172.16.0.0 means class B, with Subnet Mask /18 means 11111111.11111111.110000000000000 (255.255.192.0).

Calculation:

  • Number of Subnets = 2x, where x is the number of binaries 1 in the last 2 octets. So the number of subnets is 22 = 4 subnets
  • Number of Hosts per Subnet = 2y – 2, where y is the reciprocal of x i.e. the number of 0 binaries in the last 2 octets. So the number of hosts per subnet is 214 – 2 = 16,382 hosts
  • Block Subnet = 256 – 192 = 64. The next subnets are 64 + 64 = 128, and 128+64=192. So the complete subnets are 0, 64, 128, 192.
  • Valid host and broadcast addresses?

Next we try another one for Class B, especially for those using the CIDR /25 to /30 subnetmask. Example network address 172.16.0.0/25.

Analysis: 172.16.0.0 means class B, with Subnet Mask /25 means 11111111.11111111.11111111.10000000 (255.255.255.128).

Calculation:

  • Number of Subnets = 29 = 512 subnets
  • Number of Hosts per Subnet = 27 – 2 = 126 hosts
  • Subnet block = 256 – 128 = 128. So the complete is (0, 128)
  • Valid host and broadcast addresses?

SUBNETTING ON IP ADDRESS CLASS A

If it is solid and understands correctly, we will continue to Class A. The concepts are all the same. The difference is in which OCTET we play the subnet blocks. If Class C is in the 4th (last) octet, class B is in the 3rd and 4th octet (last 2 octet), if Class A is in the 2nd, 3rd and 4th octet (last 3 octet). Then the subnet masks that can be used for subnetting class A are all subnet masks from CIDR /8 to /30.

We try to practice for the network address 10.0.0.0/16.

Analysis: 10.0.0.0 means class A, with Subnet Mask /16 means 111111111.11111111.000000000000000 (255.255.0.0).

Calculation:

  • Number of Subnets = 28 = 256 subnets
  • Number of Hosts per Subnet = 216 – 2 = 65534 hosts
  • Block Subnet = 256 – 255 = 1. So the complete subnet is: 0.1,2,3,4, and so on.
  • Valid host and broadcast addresses?

Note: All subnet calculations above assume that IP Subnet-Zeroes (and IP Subnet-Ones) are calculated by default. Todd Lamle’s latest version of the book as well as CCNA after 2005 have accommodated this IP Subnet-Zeroes (and IP Subnet-Ones) problem. CCNA pre-2005 does not include it by default (though in fact we can activate it with the command ip subnet-zeroes), so maybe in some books about CCNA and CNAP test questions, you still find the formula for calculating the number of subnets = 2x – 2

 

IP Address

IP Address is the address assigned to the network and network equipment that uses the TCP / IP protocol. IP addresses consist of 32 bit binary numbers which can be written as four decimal places separated by periods such as 192.16.10.01 or for example in wxyz format. IP addresses are the most widely used protocols for forwarding (routing) information on the network.

IP addresses have classes as in table 2.4.

Table 2.4. IP address
classes Class Range Network ID Host ID Default Subnet Mask
A 1-126 w xyz 255.0.0.0
B 128-191 wx yz 255.255.0.0
C 192-223 wxy z 255.255.255.0

note: there is still class D that is rarely used, and there is IPV6 that will be used if this IPV4 is not sufficient.

For example, there is an IP 192.168.0.100, so it includes a Class C IP Address

Subnetting

If an owner of a class B IP address, for example, requires more than one network ID, he must apply to Internic to get a new IP address. However, the supply of IP addresses is very limited due to the proliferation of sites on the internet.

To overcome this, a technique emerged to multiply the network ID from an existing network. This is called subnetting, in which a portion of the host ID is sacrificed for use in creating additional network IDs.

For example, in class B, the network ID is 130.200.0.0 with a subnet mask of 255.255.224.0 where the third octet is enclosed by 224. It can be calculated using the formula 256-224=32. then the subnet groups that can be used are multiples of 32, 64, 128, 160, and 192. Thus, the IP address groups that can be used are:

130.200.32.1 to 130.200.63.254
130.200.64.1 to 130.200.95.254
130.200.96.1 to 130.200.127.254
130.200.128.1 to 130.200.159.254
130.200.160.1 to 130.200.191.254
130.200.192.1 to 130.200.223.254

Or it will be easier with a good formulation in determining the subnet and the number of hosts per subnet. The number of subnets = 2n-2, n = the number of hidden bits

Number of hosts per subnet = 2N-2, N = number of bits not hidden

For example, suppose a subnet has a network address of 193.20.32.0 with a subnet mask of 255.255.255.224. So: The
number of subnets is 6, because from the network address 193.20.32.0 by paying attention to the number from the first octet, which is 193, it can be seen that it is in class C. By observing the subnetmask 255.255.255.224 or 11111111.11111111.1111111. 11100000 can be seen that the three bits of the host ID are shrouded, so we get n = 3 and get: number of subnets = 23-2 = 6.

As for the number of hosts per subnet is 30, this is obtained from 5 bits that are not hidden, then N = 5 and will be obtained: the number of hosts per subnet = 25-2 = 30.

The hidden bit is the bit that is represented by the number 1, while the bit that is not hidden is the bit that is represented by the number 0.

 

 

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Why Outsourcing Your Payroll Services Can Benefit Your Business

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Benefit Your Business

Outsourcing your payroll services can be a huge benefit to your business. It can free your team to focus on more strategic projects and responsibilities, helping you to generate revenue.

However, the process of transferring payroll information can pose some challenges. Companies must establish communication guidelines and processes to transfer their employees’ data to the service provider properly.

Accuracy

Errors in payroll processing can have some negative consequences, including employee dissatisfaction, financial losses, and legal troubles. Additionally, errors can lead to tax penalties.

A professional payroll service like Altitude Payroll can reduce the chances of these problems by ensuring accuracy throughout the entire process. They will also help you stay compliant with all state and federal requirements.

In addition to reducing costs, outsourcing can be a great way to boost efficiency and improve your overall operations. By outsourcing, you can focus more on core business processes and less on tasks that don’t add value to your bottom line. Ultimately, this can help you to grow your business and stand out from the competition.

Time

Payroll processing is an important business function that can be time-consuming. It requires careful attention to federal and state regulations, the input of extensive payroll data, and double-checking for errors.

Outsourcing this task is one way to reduce the time it takes to process payroll. Doing so lets you focus on other tasks and allow your employees to focus on revenue-generating work.

Another benefit of outsourced payroll is that you won’t need to train new employees on the necessary tax code changes. This can save you time and money in the long run.

Cost

Payroll processing is one of many companies’ most time-consuming and complex administrative tasks. It includes a lot of nuances like benefit deductions, garnishments, new hires and terminations, paid time off, and state and federal regulations.

If your company has a large workforce, outsourcing payroll may be more cost effective than running it in-house. This is because a payroll service handles the tasks that a finance department typically handles in-house and frees up internal resources for more critical business functions.

Pricing for payroll services can vary by the number of employees and processing frequency. Typical costs for payroll services include a monthly base account fee and per-employee fees. These fees usually range between $20 and $100 per month.

Compliance

Compliance is a vital part of any business. It ensures your company abides by laws and policies that protect your clients, employees, the environment, and more.

It also ensures your organization stays on the right side of the law and avoids major legal disputes, which can result in costly fines or court appearances. Moreover, compliance helps build a reputable public image to attract new customers and keep existing ones.

Payroll processing includes many intricate details, including benefit deductions, garnishments, new hires and terminations, paid time off, and more. Keeping track of these details requires constant supervision and attention.

Aside from these nuances, payroll must also comply with state and federal regulations, including wage and hour laws and tax rules. This can be tricky and time-consuming, especially as these rules often change.

Security

The security of your payroll is an important factor in the overall health of your business. Without proper security measures, a hacker could access sensitive information like employee addresses and Social Security numbers, which can cause financial and identity theft.

Choose a payroll service provider that takes data security seriously to protect your business. This means limiting access to your payroll system, training team members to use it responsibly, and using data encryption to secure your data.

Businesses should also require a third-party vendor to complete SOC 2 audits to evaluate its security and privacy measures. These audits can help businesses evaluate whether a payroll service provider follows data security best practices and has robust security measures.

 

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CFD Trading 101: A Comprehensive Guide for Malaysians

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CFD Trading 101

Are you a Malaysian looking to dive into the world of Contracts for Difference (CFD) trading?

Look no further! We’ve scoured the internet to bring you a list of the best CFD brokers in Malaysia.

But before we jump into the rankings, let’s briefly discuss what CFDs are.

CFDs are a type of financial instrument that allows traders to speculate on the rise or fall of an asset’s price without owning the underlying asset.

These instruments have become increasingly popular due to their flexibility and leverage, allowing traders to potentially earn higher returns on their investments.

Now, without further ado, let’s take a look at the top CFD brokers in Malaysia.

1.      Plus500

With a user-friendly platform and a wide range of tradable instruments, Plus500 is an excellent choice for CFD traders in Malaysia. Some of the platform’s standout features include:

  • Zero commission on trades
  • Tight spreads
  • Negative balance protection
  • An extensive range of tradable instruments, including forex, commodities, stocks, and cryptocurrencies

Read more: A detailed ZFX review.

1.      2. eToro

If you’re looking for a social trading platform, look no further than eToro. With over 20 million registered users worldwide, eToro has built a reputation as a top choice for social trading. Some of the platform’s standout features include:

  • Social trading features, allowing users to follow and copy the trades of successful traders
  • Commission-free trading on stocks and ETFs
  • A wide range of tradable instruments, including cryptocurrencies
  • A user-friendly platform with a sleek interface

2.      3. IG

IG is a well-established CFD broker with a long history of providing excellent trading services. Some of the platform’s standout features include:

  • Competitive pricing and tight spreads
  • A wide range of tradable instruments, including forex, stocks, and cryptocurrencies
  • An intuitive and user-friendly platform
  • Access to powerful trading tools and features, including charting tools, alerts, and market analysis

Read more: A detailed XM review.

3.      4. Saxo Markets

Saxo Markets is another excellent choice for CFD traders in Malaysia. With over 30,000 instruments available to trade, Saxo Markets offers traders a wide range of opportunities. Some of the platform’s standout features include:

  • Competitive pricing and tight spreads
  • Access to a wide range of global markets, including forex, stocks, and commodities
  • Powerful trading tools and features, including charting tools and risk management tools
  • A user-friendly platform with a sleek interface

4.      5. City Index

City Index is a well-established CFD broker with a reputation for providing excellent customer service. Some of the platform’s standout features include:

  • Competitive pricing and tight spreads
  • A wide range of tradable instruments, including forex, stocks, and commodities
  • Access to powerful trading tools and features, including charting tools and risk management tools
  • Excellent customer service and support

Comparison Table

Broker Commission Tradable Instruments Social Trading Platform
Plus500 Zero Forex, commodities, stocks, cryptocurrencies No User-friendly
eToro Zero (on stocks and ETFs) Forex, commodities, stocks, cryptocurrencies Yes User-friendly
IG Competitive pricing Forex, stocks, cryptocurrencies No User-friendly
Saxo Markets Competitive pricing Forex, stocks, commodities No User-friendly
City Index Competitive pricing Forex, stocks, commodities No User-friendly

 

So there you have it, folks. Our top picks for the best CFD brokers in Malaysia. Remember to do your own research and choose the broker that best fits your needs and trading style. Happy trading!

Read more: A detailed Exness review.

Frequently Asked Questions

Sure, here are three frequently asked questions (FAQs) about CFD trading in Malaysia and detailed answers to each:

1.      Is CFD trading legal in Malaysia?

Yes, CFD trading is legal in Malaysia. The Securities Commission of Malaysia regulates the financial markets and has authorized several brokers to offer CFD trading services to Malaysian residents. However, it’s important to note that not all CFD brokers are authorized to operate in Malaysia, so it’s important to choose a licensed broker.

2.      What are the risks involved in CFD trading?

As with any form of trading, CFD trading involves risk. Here are a few risks to keep in mind:

  • Leverage: CFDs are leveraged products, which means that traders can potentially earn higher returns on their investment, but it also means that losses can exceed the initial investment. This makes it important to use risk management tools, such as stop-loss orders, to limit potential losses.
  • Volatility: CFDs are sensitive to market volatility, which can result in rapid price movements. This can lead to sudden losses or gains.
  • Counterparty risk: CFD brokers act as the counterparty to their clients’ trades, which means that the broker’s financial stability is an important consideration. It’s important to choose a reputable broker with a strong financial standing to minimize counterparty risk.

3.      What are some strategies for successful CFD trading?

Here are a few strategies to keep in mind when trading CFDs:

  • Develop a trading plan: Before placing any trades, it’s important to have a solid trading plan in place. This should include your risk management strategy, entry and exit points, and the instruments you plan to trade.
  • Stay informed: Stay up-to-date with market news and trends that could impact the instruments you’re trading. This will help you make informed trading decisions.
  • Use risk management tools: As mentioned earlier, risk management tools such as stop-loss orders can help limit potential losses.
  • Keep emotions in check: Emotions can cloud judgment and lead to impulsive trading decisions. It’s important to maintain a level head and stick to your trading plan.
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Why Mileage Reimbursement Is a Must-Have for Every Business

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Mileage Reimbursement

Mileage reimbursement is a great way to compensate employees for using their vehicles for business purposes. It can also help reduce your company’s overall fuel costs.

Employees can keep track of their miles by filling out a mileage report form. Keeping a detailed log is essential for getting a fair reimbursement rate.

Employee Satisfaction

Employee satisfaction is a critical business strategy that can significantly impact employee retention and the bottom line. A satisfied workforce is more engaged, which increases productivity and improves customer experience.

Employee turnover is a significant business expense, but studies show that the best employees stay with a company longer than the average. They stay because they enjoy their jobs, feel a sense of purpose, and have healthy relationships with their colleagues and managers.

Satisfied employees are also more likely to work well with others, which helps the team stay productive and committed to achieving company goals. Creating a culture where everyone feels they have a voice and can contribute to the company’s success is crucial for retention.

Using employee satisfaction surveys is the first step in creating a happier, more engaged workforce. These surveys can give you insights into what works for your company and what needs improvement.

Ensuring the survey questions are reasonable and appropriate for employees is essential. Open-ended questions will help you get a more honest response.

Whether you use online or paper-based employee satisfaction surveys, it is vital to regularly compare and monitor the results to see how your company progresses over time. This is also the perfect way to identify areas that need improvement.

Tax Deductions

Whether you run your business from your home office or are a contractor who drives to clients’ locations, business-related mileage reimbursement can save you money on your taxes. Whether you use the standard mileage rate or the actual expense method, the proper deductions can add up fast.

The IRS allows you to claim deductible costs of operating your car for business, charitable, medical, and moving purposes. This can include gas, insurance, depreciation, license fees, tires, car washes, lease payments, and auto club dues.

It is crucial to keep good records of all trips taken for business purposes and write them off on your taxes. This can be done with a mileage logbook, an app, or a combination.

Reduced Risk of Fraud

Expense reimbursement fraud is one of the biggest threats to companies. According to the Association of Certified Fraud Examiners, these frauds cost organizations about 5 percent of their yearly revenues.

There are three primary types of expense fraud: overstated expenses, fictitious expenses, and asset misappropriation. Inaccurate mileage reporting is a typical example of overstated expenses.

Fictitious expenses are submitted for reimbursement that was not incurred, usually by manipulating receipts or mileage records. This could include flying first class and claiming inflated mileage or obtaining a refund for a trip and submitting that refund as a reimbursement.

Another form of fictitious expense fraud is submitting business mileage when driving an employee’s vehicle. It may be unintentional, but it can add to a significant loss for your company.

This type of fraud is a product of mileage programs that lack oversight and insight into your mobile workforce.

A simple example is if an employee drives an errand and submits that as a business trip. This can be a reasonably harmless addition, but if it happens repeatedly, this could lead to overspending. This can be prevented by implementing an automated mileage tracking app with GPS capabilities. The app will track your employees’ trips and ensure they are submitting accurate mileage reimbursements every time.

Increased Efficiency

A well-crafted mileage reimbursement policy can increase efficiency across your business. It will save time and resources by reducing administration and inefficiency.

Mileage reimbursement is a crucial way to help your employees cover the cost of driving for work purposes, but it’s also essential for maintaining compliance with labor laws. If you don’t have a valid reimbursement policy, it could put your company at risk for legal complications.

As a result, it’s essential to create a mileage reimbursement policy that is flexible and malleable enough to accommodate changing circumstances. In addition to avoiding legal issues, an accountable mileage policy will improve employee satisfaction and reduce overall costs.

One of the most important ways to ensure that your mileage reimbursement policy is effective is to track your drivers’ trips and expenses in real time. This will enable you to determine the optimal mileage reimbursement rate based on your driver-specific costs.

Another critical component of creating a successful mileage reimbursement program is accurately accounting for regionally-influenced fixed vehicle costs. Gas prices, insurance premiums, taxes/registration/license fees, and maintenance costs vary widely from city to city, so you must calculate what each driver will pay before you begin reimbursing.

The best solution is to implement an expense management platform that allows you to automatically capture all employee trips and expenses based on their specific destinations. This will help you get a detailed picture of your drivers’ costs and make it easy to create a policy that meets your needs while maintaining policy compliance.

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