[Your Name] [Your Title] [Company Name] [Company Address] [City, State, Zip] [Date] [Employee's Name] [Employee's Address] [City, State, Zip] Subject: Employee Automobile Expense Allowance — [Month/Year] Dear [Employee's Name], I hope this letter finds you well. As an employee of [Company Name], we have recognized your significant contributions and dedication towards the success of our organization. It is with great pleasure that I inform you of our decision to provide you with an automobile expense allowance, effective from [Effective Date]. This allowance is designed to cover the costs associated with using your personal vehicle for work-related purposes. Rhode Island law grants certain rights and sets guidelines for employers when providing automobile expense allowances to their employees. We have thoroughly reviewed the applicable laws and are committed to adhering to the obligations set forth by the state of Rhode Island. In accordance with Rhode Island law, we are pleased to offer you the following employee automobile expense allowance options: 1. Mileage Reimbursement Allowance: This option entitles you to receive reimbursement for each mile driven using your personal vehicle for work-related purposes. The rate of reimbursement will be [$XX.XX] per mile, which is the current IRS standard mileage rate. To avail this allowance, you must maintain accurate records of your mileage and submit them with your monthly expense report. Please ensure that each expense report is submitted by the 5th business day of the following month. 2. Fixed Monthly Automobile Allowance: With this option, you will receive a fixed monthly allowance of [$XX.XX] to cover the costs associated with using your personal vehicle for work purposes. This allowance is taxable and will be included in your regular paycheck. No mileage records are required for this allowance, as it is intended to assist you with general automobile expenses incurred during your employment with [Company Name]. You are required to select one option that best suits your needs and preferences. Please indicate your choice by circling the applicable option in the attached form and returning it to the Human Resources Department no later than [Deadline Date]. Once we receive your choice, we will implement the selected allowance option from [Effective Date]. It is important to note that regardless of the chosen option, the use of your personal vehicle during work hours must be in compliance with our company's guidelines and policies. This includes maintaining proper insurance coverage, ensuring all state-required registrations are up to date, and abiding by all traffic and safety regulations. Should you have any questions or require further clarification regarding the employee automobile expense allowance program, please do not hesitate to reach out to the Human Resources Department at [HR Contact Information]. We appreciate your commitment to your role and look forward to your continued contributions to the success of [Company Name]. Thank you for your attention and prompt response. Sincerely, [Your Name] [Your Title] [Company Name]