Collect Data For Legal Arizona Construction Liens Forms For Free

Estimate actual employee vehicle expenses and compare these with your current allowance amount. Then calculate the car allowance amount needed to close any gaps. If you're paying a taxable car allowance, calculate how much your organization could save by switching to a tax-free plan.

A standard car allowance is considered taxable because it does not substantiate business use. A mileage reimbursement remains non-taxable if it does not exceed the amount set by the IRS business mileage rate.

Mileage reimbursement is a much fairer system, as well. Employees who travel more and cover more territory will be reimbursed for a higher amount, incentivizing them to travel more for work. Mileage reimbursement, unlike a car allowance, won't come back to haunt you during tax season, either.

One way to ensure you have a non-taxable car allowance is to verify your employees' mileage for a certain period of time and then reimburse them. This allowance will not be taxable as long as it is not above the 2023 IRS standard mileage rate for business travel, which is 65.5 cents.

In Arizona, liens must be filed within 120 days from the completion of the project as a whole. However, if a notice of completion was filed, the deadline is shortened to 60 days from the date such notice was filed.

The party must have a contract with the owner-occupant of residential project in order to file a lien against that project. This means subcontractors and suppliers will not qualify if they invoice the contractor directly on a project, rather than have a contractual relationship with the owner-occupant.