Whether
you’re an employer attempting to enhance the companies’
environmental strategies or a commuter trying to find ways to save
money, there are many benefits associated with
participating in a rideshare program.
| EMPLOYER | COMMUTER |
|---|---|
| Tax Savings | Cost Savings/Insurance Rates |
| Improved employee recruitment and retention | Minimize car maintenance |
| Reduced demand for parking | Preferential parking |
| Access to labor markets | Reduced traffic congestion |
| Enhanced productivity & punctuality | Social aspects |
| Reduced absenteeism | Guaranteed Ride Home |
| Corporate environmental performance & citizenship | Free commuter matchlist | COMMUNITY |
| Improved quality of life | More effective transportation system |
| Improved air quality | Fewer road construction impacts |
Changes to the federal
tax code have made transportation fringe benefits more appealing
than ever. Four tax advantage transportation benefit options
are available.
Benefits in Addition to Salary: Employers may provide up to $115 per month to employees who commute to work by transit or vanpool. The employer pays for the benefit and receives the equivalent deduction from business income taxes. Employees receive the benefit completely free of payroll and income taxes, in addition to their current salary. Employers can pay directly for vanpool expenses or purchase transit passes for employees. Alternatively, they can reimburse employees if these passes are not available and the employee provides a receipt.
Benefits Instead of Salary: Employers may permit their employees to set aside up to $115 per month of their pre-tax income to pay for transit and vanpools. Employees save on income taxes since that amount is no longer reported as taxable salary. Employers are able to reduce their payroll costs.
Combination: Employers may share the cost of commuting with their employees. Employers can give their employees part of the cost in addition to salary and allow their employees to set aside part of their pre-tax income to pay the remaining amount. The employer can subsidize any amount, but only $115 per month is tax deductible. Any amount over that is taxable.
Qualified Parking: Employers may offer employees the option of cashing out the value of employer provided parking. Employee may receive up to $220 per month tax free for giving up their parking space.
The San Joaquin Council of Governments currently offers new vanpools a $150 subsidy per month per van for one year.
The San Joaquin Valley Air Pollution Control District (SJVAPCD) offers a $350 Commuter Vanpool Passenger Subsidy for new vanpools for one year. The commuter must reside within the geographic area of the SJVAPCD and meet a one-way mileage requirement. Other eligibility requirements may apply.
Donna Aflague
Sr. Regional Planner
Yvette Davis
Assoc.
Regional Planner
Lesley Miller
Regional Planner
Teresa Garcia
Planner Technician
1-800-52-SHARE
1-800-527-4273
209-468-8960 Tel
209-468-9930 Fax