"According to the Code he can’t as a more than 2% owner but has to use actual expense ."

Which code, or pub, did you find that?

What you did not clarify is: who owns the vehicle?

If it is a personally-owned vehicle, he would submit under An Accountable Plan, for reimbursement of business miles at the mileage rate per IRS, and that makes it not subject to payroll taxes or income taxes.