How to Choose the Best ELD to Track IFTA

What is an ELD?

An electronic logging device (ELD) is a piece of hardware used to record driving time for commercial motor vehicles. An ELD works by plugging into a vehicle’s onboard diagnostics (OBD) port and automatically turning on to pull data directly from the engine, including whether the engine is on or off, how much fuel has been used, and how far it has traveled. Under the ELD mandate, the Federal Motor Carrier Safety Administration (FMCSA) requires that most commercial vehicles have an ELD. (Learn more about whether you’re required to have an ELD in our comprehensive guide.)

What is IFTA?

The International Fuel Tax Agreement (IFTA) is an agreement among the contiguous 48 U.S. states and 10 Canadian provinces that simplifies fuel tax reporting for commercial motor carriers operating in multiple jurisdictions. The purpose of IFTA is to simplify fuel use reporting for commercial motor carriers and owner-operators that drive in two or more jurisdictions. Before IFTA, motor carriers were required to obtain fuel permits for every jurisdiction they entered into. Before IFTA, carriers had to file separate fuel tax reports for each jurisdiction where they operated. For example, if a driver purchased fuel in Indiana but drove into Ohio, they would need to submit separate tax reports for each state. This was inefficient and costly. This process was inefficient and costly. IFTA simplified the reporting of fuel use by requiring that carriers operating in IFTA jurisdictions submit only a single fuel tax form, reflecting their inter-jurisdictional fuel use to their home state, even when the carrier has fleet vehicles operating in multiple jurisdictions.

IFTA requires that commercial carriers record miles driven, fuel purchased, and fuel tax paid in each state their fleet vehicles drove in for a given quarter. Carriers must record total miles driven and fuel purchased in each jurisdiction, not just the combined total sums, meaning that carriers need to carefully track mileage and fuel purchases for each vehicle in their fleet in every jurisdiction in which the fleet operates.

For example:

• Vehicle A pumps 200 miles worth of fuel in the state of Washington

• Vehicle A drives from Washington to Oregon and then back from Oregon to Washington

• Vehicle A has driven a total of 100 miles in Washington and a total of 100 miles in Oregon

• Carrier A notes the mileage in Washington and Oregon for Vehicle A

• Carrier A reports this at the end of the quarter

• Carrier A pays (or is credited depending on the initial tax paid versus the tax rate in the traveled states) 100 miles worth of fuel tax to Washington and 100 miles worth of fuel tax to Oregon

This information is submitted to a carrier’s base jurisdiction, which collects taxes on net fuel use, determines if the carrier should receive a fuel tax return, and distributes funds to other states entitled to receive a portion of the taxes collected. IFTA, along with the International Registration Plan (IRP), oversees the process and provides assistance to states and provinces on running their individual programs. IFTA reports are due quarterly or four times per year on the following schedule:

Although IFTA has alleviated many of the pain points of fuel tax reporting, it can still be a complex process for many fleets. That’s why many commercial motor carriers today rely on their ELD solution to automatically track every mile each fleet vehicle travels in every jurisdiction it enters. ELDs also streamline the quarterly IFTA reporting process.

How can an ELD solution streamline IFTA reporting?

For fleet managers, it can be difficult to accurately track every mile a vehicle travels in each jurisdiction. Manually recording odometer readings when crossing state lines can be inaccurate and inconsistent, leading to reporting errors and compliance risks. Plus, manually uploading and reconciling fuel purchases across an entire fleet is labor-intensive and prone to errors, making accurate tax calculations difficult. An ELD solution can help streamline IFTA tracking and reporting by:

• Automatically tracking mileage by jurisdiction and vehicle: ELDs function as reliable electronic logbooks, using vehicle tracking technology to accurately measure and record the total distance traveled by each vehicle in each jurisdiction.

• Integrating fuel purchase data with mileage data: By integrating mileage data with fuel purchase data—either via fuel receipt uploads or a direct fuel card integration—an ELD compliance solution can automatically track tax paid gallons by jurisdiction and prepare IFTA reports.

• Providing digital, downloadable IFTA fuel tax reports: Finally, an ELD solution with online reporting features makes quarterly IFTA reporting a breeze. With all your mileage and fuel data in one platform, you can quickly and easily download the information you need to submit your quarterly IFTA reports. Plus, with tools to audit fuel purchases and review both real-time and historical data, there’s less room for manual error. You can be more confident the data is accurate.

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What is the best ELD for IFTA reporting?

Trusted by more than 20,000 customers, Samsara’s Connected Operations Platform includes an easy-to-use ELD and cloud-based compliance solution that makes IFTA tracking and reporting a breeze. With Samsara’s IFTA Mileage Report and Fuel Purchase Report, you can:

• Automatically track mileage by jurisdiction and vehicle with accurate GPS and odometer data.

• Easily associate mileage with fuel purchase data (and view tax paid gallons by jurisdiction) via our direct fuel card integrations or simple fuel receipt upload.

• Audit and reconcile fuel purchases by jurisdiction to ensure accurate reporting and reduce discrepancies.

• Easily download data per quarter or month with IFTA-specific filters, such as vehicle fuel type and specific jurisdictions.

• Schedule reports to be sent to selected recipients at a chosen cadence, like monthly or quarterly.

NECO Transport, for example, was able to completely digitize IFTA reporting with Samsara and increase efficiency for both their drivers and administrators. What used to be a paperwork-intensive process—especially when it came to exemptions, like differentiating between thruway and non-thruway mileage—is now completely automated. Samsara automatically tracks IFTA mileage for every vehicle, which can be viewed in an easy-to-read chart that can be exported or periodically emailed to administrators.

“IFTA was all done by hand,” said NECO Transport’s General Manager, Bruce Donovan. “Samsara has given us the ability to remove all that paperwork.”

Streamline compliance with Samsara

By integrating telematics with fuel purchase data in one platform, Samsara’s FMCSA-registered ELD and cloud-based compliance solution makes IFTA tracking and reporting easy. 

Whether you need to streamline IFTA or HOS compliance, track and share vehicle ETAs, manage DVIRs, or protect your drivers’ safety, we have an easy-to-use solution you can customize. These are just a few of the ways Samsara’s Connected Operations Platform increases efficiency.

To learn more about how Samsara can help your business’ digital transformation, reach out for a free trial today.

Want to learn more about the benefits of ELDs? Learn how Dohrn Transfer Company streamlined ELD compliance and optimized their 600+ asset fleet with Samsara’s integrated solution for real-time data and connected operations.

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To learn more about how Samsara can help you remain compliant, explore Samsara’s ELD compliance system and get in touch with our team today.