
Section 132(f) of the IRS Code allows employers to offer their employees tax-free transportation benefits. Check with your human resource or benefits department to learn if your company participates.
- Employer-Paid Transportation Benefits. Employers can pay for their employees to commute by transit or vanpool, up to a limit of $115/month.
- Employee-Paid, Pre-Tax Transportation Benefits. Employers can allow employees to set aside up to $115/month of pre-tax income to pay for transit or vanpooling.
- Shared-Cost Transportation Benefits. Employers can share the cost of transit or vanpool costs with employees-and everyone can receive valuable tax savings.
- Parking Cash Out. Employers can offer their employees the option to "cash out" of their existing parking space.
Many employers also offer their carpooling and vanpooling employees preferential parking at the worksite. This is an easy and inexpensive way to let employees know that their efforts are valued. |