Use SacRegion511 to find your commute options such as the bus, potential carpool matches or bicycling buddies,
and stay plugged into regional events and programs such as May is Bike Month!
Love to Ride offers everything you need to start bicycling to work (or for fun!)…
Commute with Enterprise may have a vanpool looking for riders…
If you’re looking for general point-to-point trip planning, Google Maps is a good option…
Employer-based programs can be among the most effective of transportation demand management programs, in part because the program can be tailored to the commute needs of employees at their specific place of work. Employers can provide opportunities for employees to escape a congested commute through options such as alternative work schedules or telecommuting. Employers are also in a position to influence employee commute choices with incentives (such as a subsidized bus pass) or even by removing/reducing subsidies that encourage drive-alone commutes. Research indicates that financial incentives and disincentives such as these are particularly effective commute trip reduction measures. Numerous studies conclude that parking charges, telecommuting, flexible work hour provisions including compressed work weeks, guaranteed ride home programs, and incentives for biking and walking all can be effective in reducing drive alone commuting. In addition, programs that encourage carpooling and vanpooling have proven successful in a number of localities, particularly if vans are provided.
Employers providing employee commute programs are eligible for a variety of tax breaks. Under Internal Revenue Code (IRC) 132(f). Employers may provide workers with up to $280 per month in tax-free transit and vanpool benefits in 2022. The monthly limitation under Section 132(f)(2)(A) Qualified Transportation Fringe Benefits regarding the aggregate fringe benefit exclusion amount for vanpools (commuter highway vehicles) and transit passes is $280. The monthly limitation under Section 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $280. Employers can allow employees to use pretax dollars to pay for transit passes, vanpool fares and parking.
Transit | Vanpool | Qualified Parking | Qualified Bicycle Commuting Reimbursement | |
---|---|---|---|---|
Incentive Levels | Up to $280/month* for transit expenses | Up to $280/month* for vanpool expenses | Up to $280/month** for parking at or near an employer’s worksite, or at a facility from which employee commutes via transit, vanpool, or carpool | Up to $20 per qualified bicycle commuting month. Bicycle commuting reimbursement includes any employer reimbursement during the 15-month period beginning with the first day of the calendar year for reasonable expenses incurred by the employee during the calendar year. |
Employer Tax Benefit | Employers give their employees up to $280/month* to commute via transit; gets a tax deduction and saves over providing same value in gross income (or) Employers allow employees to use pre-tax income to pay for transit and employers save on payroll tax (at least 7.65% savings) (or) A combination of both up to statutory limits |
Employers give their employees up to $280/month* to commute via transit; gets a tax deduction and saves over providing same value in gross income (or) Employers allow employees to use pre-tax income to pay for transit and employers save on payroll tax (at least 7.65% savings) (or) A combination of both up to statutory limits |
Employers give their employees up to $280/month* to commute via transit; gets a tax deduction and saves over providing same value in gross income (or) Employers allow employees to use pre-tax income to pay for transit and employers save on payroll tax (at least 7.65% savings) (or) A combination of both up to statutory limits |
Employers reimburse their employees up to $20/month for qualified bicycle commuting; gets a tax deduction and saves over providing same value in gross income. According to the IRS, “Generally, you can exclude qualified transportation fringe benefits from an employee’s wages even if you provide them in place of pay. However, qualified bicycle commuting reimbursements do not qualify for this exclusion.” |
Employee Tax Benefit | Employee receives up to $280/month* tax free (not on their W-2 form) (or) Employee pays for commute benefit with the pre-tax income and saves on income tax (or) A combination of both |
Employee receives up to $280/month* tax free (not on their W-2 form) (or) Employee pays for commute benefit with the pre-tax income and saves on income tax (or) A combination of both |
Employee receives up to $280/month* tax free (not on their W-2 form) (or) Employee pays for commute benefit with the pre-tax income and saves on income tax (or) A combination of both |
Remote working has become commonplace. However, if you’re uncertain how to navigate this terrain, you can avoid policy, communications, and execution pitfalls by applying best practices with the resources, below.
Employers can play a role in helping their employees access transportation alternatives to their jobs. These can include:
If you don’t offer these programs, as we have many of these in place already (and more)!