Most employers reimburse their employees for work-related use of their own cars at or near the mileage rate set each year by the IRS. Use or an amount at or below the IRS rate eliminates the need to maintain extensive records in order to exclude the reimbursement from employees' taxable income. Employees still have to provide specific information about the business use of their cars. For employees who use their own cars extensively, more complex reimbursement programs may be implemented to encourage cost reductions. Employers should require employees who use their own cars for business to provide proof of insurance coverage.