This section briefly describes general information and descriptions of the tax incentives. However, you should consult with your company's accountant or tax attorney to ensure compliance. The employer pays for the benefit and receives an equivalent deduction from business income taxes.
Employees receive the benefit free of all payroll and income taxes.
Therefore, employees save on payroll and income taxes and employers save on payroll costs as well. Out This option is meant to provide an additional financial incentive for employees to use alternate mode options. Any public or privately-owned or operated bus, rail, subway, shuttle bus service or vanpool that provides regular commute operations. All other employees in the vanpool are only eligible for the vanpool benefit because only one person can receive the parking benefit. However, employers can offer incentive programs, such as taxable subsidies, for those who walk, bike, or ride in a carpool.