Employers: Frequently Asked Questions
How does alternative transportation benefit business?
Alternative transportation saves businesses money by decreasing traffic congestion (which costs businesses $40 billion annually) and reducing parking expenses. There are also many tax benefits for employers and employees that use alternative transportation. In addition to money saved, alternative transportation improves employee productivity by promoting better health and creating more personal time. Learn more about the benefits of alternative transportation for employers.
What are the tax benefits to using alternative transportation?
The Federal tax code allows employers to reduce payroll taxes for qualified transit, train, vanpooling and biking benefits. View tax benefits of alternative transportation.
How can employers encourage alternative transportation?
Employers can promote alternative transportation practices among employees in a variety of ways:
- Talk to employees about the benefits of alternative transportation.
- Offer cash incentives for carpooling or help subsidize a vanpool. Your employees can ride with one another or use the Match & Ride tool to find carpooling partners.
- Educate employees about the Emergency Ride Home program, as some people may be reluctant to try alternative transit in case of an emergency.
- Offer preferential parking for carpools and vanpools. Free parking is not free to your business, so it’s beneficial to encourage alternative modes of transportation to reduce the space needed for parking.
- Install covered parking for bikes. Consider offering showers and lockers for people who ride or walk to work.
- Offer teleworking opportunities if possible. If this works for employees and your company, it’s a great way to reduce unnecessary driving trips.
- Offer alternate work hours or flex time to help employees reduce car trips, emissions and stress, and to promote work-life balance.
What programs are available in Pennsylvania to help employers promote alternative transportation?
TransitChek® is a program administered by the Delaware Valley Regional Planning Commission that enables employers to cut payroll taxes and boost their benefits package. Job Perks is a pre-tax commuter benefit provided by the Port Authority of Allegheny County. Offered via employers in Allegheny County, employees can use the benefit to purchase and receive Port Authority monthly passes at work through payroll deduction. Find more information about the programs.