Vanpool Benefits
Vanpool
benefits can be offered at low cost by employers as part of a commute
benefits package. Providing these commute benefits could qualify
an employer for the
Best Workplaces
for Commuters program,
which recognizes employers who voluntarily meet the National Standard
of Excellence in employer-provided commuter benefits.
Enhanced
Employee Benefit Package
While employees are capable of determining their own method of commute,
having a transportation program increase employee ties with the
workplace. By endorsing commute options such as vanpooling, one
is effectively showing employees that the company cares about how
they get to and from work each day. In addition to any direct benefits
the employer provides, the employees who take advantage of the vanpool
program will feel the workplace is working to benefit their lives.
This will have the effect of retaining current employees longer
and both attracting, and increasing the accessibility of your workplace
to, new employees.
Tax Benefits
Employers
who wish to provide vanpool assistance to their employees can take
advantage of the financial incentives offered at both the Federal
and State levels in the form of tax deductions and credits.
Direct
Payments
The
employer can deduct the cost of any direct payments towards employee
vanpool costs as a business expense, saving on federal and state
taxes.
Pre-Tax
Deductions
Your company can also deduct up to $110 per month
for vanpooling costs from employee paychecks before taxes. As a
result, your company saves on payroll taxes and your employees don't
pay income taxes on those costs. Or you can combine a direct payment
and a pre-tax deduction, in any proportion, up to a total of $110
per month for both.
Providing
benefits in lieu of salary will not increase costs to employers;
it will reduce their payroll costs since payroll taxes do not apply
to these benefits. Pre-tax payroll deductions are referenced in
IRC Section 132(f), as amended by TEA-21, Title IX, Section
910. Also check with your tax advisor.
New Benefit
for Federal Employees: All Federal employees are eligible
for transit/vanpool benefits now. They have to get a form from their
HR office and they can receive up to $110 a month to use for transit
passes or vanpool fares. It
comes in the form of a “RideChek”
voucher which should be accepted by transit agencies and VPSI (the
leasing company for Valley VanPool vans).
State
Tax Benefits
These federal tax benefits also are eligible deductions
on your state tax returns, adding additional savings.
State
Tax Credits
Under
the auspices of
Oregon's Business Energy Tax Credit (BETC) program,
employers can receive a tax credit for the eligible costs of purchasing
vehicles for employee vanpools, or for direct subsidies of fares.
The program is administered by the Oregon Department of Energy,
which requires that businesses apply in advance to qualify for the
credit.
Preferential
Parking
Reserved vanpool parking spaces in prime locations
help the vanpools get noticed and shows employees that the company
cares how they get to work.
Next
Steps?
Talk to your finance department about the tax benefits, you may
already have them. If you don’t already have these benefits
give them the IRS info (IRC
Section 132(f))
and
Oregon's Business Energy Tax Credit
(BETC)
information. Tell them to call us at 888-323-POOL with questions.
We will gladly sit down with them and explain how they can provide
great vanpool benefits at little or no cost.
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