Such programs serve as attractive employee benefits which help in the recruitment and retention of quality employees. In addition, because of recent changes in the Federal tax code, employers can save on taxes by offering these benefits. Services to facilitate vanpooling and carpooling such as providing vans, ridematching, and a guaranteed ride home. Incentives to bike or walk. When employers pay for the benefit, they can deduct the value of these benefits from their Federal business income taxes.
Employers save compared to conventional raise or bonus.
Tax breaks on benefits only apply directly to transit, vanpool and parking benefits. The cash option from Parking Cash Out and any other monetary incentives are taxable for that employee. Subsidized parking and other transportation benefits do not become taxable if an employer offers them along with the Parking Cash Out option. Although the tax laws do not specifically relate to benefits like telecommuting, carpooling, biking, walking, and other commute options, employers may still offer them. One way to provide incentive for these other options is through Parking Cash Out, where employees can choose the cash benefit and commute by these alternative modes.