Parking cash-out plans

Consider a plan that allows your employees to cash out their subsidized parking in exchange for relinquishing their spot. The federal government has enabled localities to put tax incentives in place that allow companies to offer their employees cash equaling the cost of subsidizing a parking spot in exchange for their place in the lot. Parking cash-out plans have resulted in more widespread use of alternative transit and ridesharing, as well as reduced air pollution.

Parking guru Donald Shoup's study showed that cash-out plans result in reduced emissions and greater employee satisfaction. Although it sounds like money out of your coffers, cash-out plans can increase your company’s bottom line, better manage the parking spaces you have to accommodate those who actually do need them, and improve air quality. Even payroll departments say they're about as easy to administer as W-9s. They do have a few requirements:

		The employer must be subsidizing parking in a lot they themselves do not own.

		The employer must have 50 or more employees.

		The employer must be able to calculate how much they pay out-of-pocket to subsidize their employees' parking spots

		The parking spots currently subsidized can't be specifically earmarked for ridesharing plans.

Giving your employees cash for parking they don't need can help you recoup your parking expenditures, too.

Cash-out plans aren't coercive – as long as your employeesaren’t using subsidized parking, they can get to work any they want to. Consult your accountant or legal team to find out whether a plan like this might be right for your company.

Other Solutions for Commuters:

Another popular avenue for easing parking or commuting travails is teleworking, which also earns participating companies tax breaks in certain states. A notable example is Virginia Representative Rob Whitman’s Telework Tax Incentive Act (H. R. 710) which would grant eligible taxpayers an annual credit of up to $1,000. “The telework tax credit aims to break down financial barriers to telework, increase worker productivity, provide for continuity of operations, and reduce traffic congestion through incentivizing a flexible work environment,” says Representative Whitman.

Some companies offer flex-time, which enables employees to work non-traditional hours, if necessary. In
flex-time plans, employees work a set amount of days and hours—but they define their starting and ending times. Flex-time plans do not mean that you’ll never see your employees; most companies establish a core period (for example, from 12-3pm) when employees are expected to be in the office. Flex-time allows employees to set their own schedule, working around childcare issues, class schedules, or other obligations. In addition, this plan helps spread out congestion, lessening the intensity of rush hour.

The compressed work week allows certain employees to work fewer than five days a week, but still work on a regular basis and earn salaried wages. Like flex-time, the compressed week permits employees to have additional time to focus on extracurricular obligations, and helps lessen traffic during peak commuting times.

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