Where costs for parking are bundled into the firm s rent payment, employers may be able to renegotiate leases, separate the cost for a specified number of spaces, and then proceed to cash-out parking as a company with leased parking would. Companies can charge more for parking to reflect its high costs, or set a value on currently subsidized parking spaces, and charge workers accordingly. Depending on the price set, this form of parking management is a cost-effective way to encourage drivers to carpool or use transit. Companies may use a portion of money saved to finance vanpools, train shuttles and transit passes. While potentially effective at reducing driving, parking pricing will be less attractive to employees than a parking cash-out program that offers compensation for not driving and parking.
Some employees receive a set amount of money each month for transportation costs.
The employee decides how to get to work and individually pays for his transportation, using this allowance. If he decides to drive to work alone, he pays for his parking place, which may cost more than his allowance. Employees can use Transit Chek regardless of whether their employer has a parking management program in place. Employers save on payroll taxes as well. So, both employees and employers save.