Employee Commuter Benefits

Commuting can be a significant aspect of your employees’ workday and providing them with valuable benefits can improve job satisfaction, reduce stress, and contribute to a more sustainable future.

Why Commuter Benefits?

Cost Savings

Supporting sustainable commuting options reduces your company’s expenses for parking and lowers commuting costs for your employees.

Tax Savings

Employers and employees can enjoy potential tax savings through various commuter benefit programs.

Employee Recruitment and Retention

Offering commuter benefits can make your company more attractive to potential employees and help retain existing talent.

Reducing Stress

Providing options for stress-free commutes can improve employee well-being and productivity.

Transit and Vanpool Incentives

Employers may provide a monthly commuter benefit to employees who commute to work using transit (bus or rail) or vanpool. The commuter benefit can be provided as a pre-tax or direct benefit. For 2025, the IRS allows a tax-free amount up to $325 per month.

Pre-Tax Commuter Benefits

This option allows employees to set aside money for their transit or vanpool expense each month from their paycheck (like a pre-tax flexible spending arrangement for healthcare expenses).

Direct Commuter Benefit

Employers may provide a commute benefit directly to employees in their paycheck for monthly transit or vanpool expenses. This type of benefit is not taxable income for the employee and the employer does not pay payroll taxes on the benefit amount, up to the maximum allowed by the IRS.

ConnectingVA Vanpool Program

The ConnectingVA Vanpool Program makes commuting easier and more affordable for employees while benefiting your business. We provide guidance on vanpool formation, help match employees with existing vanpools, and offer financial assistance to make shared commuting a seamless experience.

Vanpools are an excellent option for groups of five to 15 riders traveling 15+ miles one way to work. Employees who participate may qualify for direct or pre-tax commuter benefits, and employers have several ways to support vanpooling at their workplace.

How Your Business Can Support Vanpooling

Encouraging employees to vanpool offers multiple benefits, from reducing parking demand to enhancing employee satisfaction. Vanpooling provides a reliable commute, making it easier for employees to arrive on time while cutting down on transportation costs. Employers can support the program in different ways:

Buy: Large employers may choose to purchase vans outright, allowing for complete control over their fleet. This option requires managing vehicle registration, insurance, and maintenance but offers long-term savings and customization.

Lease: Leasing vanpool vehicles is a flexible, lower-cost option that allows businesses to scale up as more employees express interest in vanpooling.

Contract: Employers can partner with a vanpool provider to handle everything, from forming vanpools and recruiting drivers to managing insurance and maintenance. This hands-off approach simplifies the process for businesses while ensuring employees have a stress-free commute.

Assist: If purchasing, leasing, or contracting isn’t feasible, you can still support vanpooling by helping employees find an existing vanpool. The ConnectingVA app and website make it easy to locate vanpools, or you can contact us for assistance in forming new groups.

Why Vanpooling Works for Employers

By supporting vanpooling, businesses can reduce the need for parking spaces, cut down on employee commute-related stress, and enhance job satisfaction. Companies that provide commuter benefits, such as pre-tax savings or financial incentives for vanpool riders, can also boost employee retention and recruitment efforts.

Many businesses also choose to offer incentives such as preferred parking for vanpools or covering part of the monthly vanpool cost. These small investments can lead to a more engaged and productive workforce.

Want to learn more? Contact us today to explore vanpool solutions for your business!

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Provide Transit and Commute Options for Employees

New Employee Welcome Packets
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Providing new employees with a packet that offers commute options on their first day or prior to their first day via email may assist them with options they had not thought about. This packet could include a free week bus pass and route information to your facility, bicycle maps, etc.

Provide commute options information
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E.g., carpool/vanpool matching, transit routes and schedules) via a company employee intranet website or postings in employee break areas. Encourage employees to use the ConnectingVA website or mobile app for ride matching, trip planning, and to earn rewards. (https://connectingva.agilemile.com/)

Parking Management
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Offer carpools and/or vanpools preferential parking close to the main door to encourage and reward carpooling and vanpooling.

Flexible Schedules and Compressed Work Weeks
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Allow employees the opportunity to shift their hours to better align with transit schedules, accommodate carpools/vanpool hours, or family schedules. Also, a compressed work week such a four – 10 hour days/week or working 9 days in two weeks. For free assistance with your company’s hybrid work plans, visit https://connectingva.drpt.virginia.gov/hybrid-work-plans/

Parking Cash-Out
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Parking Cash-Out is a program in which the employer offers employees the option to accept taxable cash income instead of a free or subsidized parking space at work. This gives the employee the choice to keep the parking space at work, use the money to pay for transit or vanpool fares, or save the money by carpooling, bicycling, or walking to work. (Note: The employer can provide a tax-free transit or vanpool benefit as part of a Parking Cash-Out program.) By equalizing the incentives, some employees who currently drive alone may think twice about it and choose another option.

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Bicycle Commuting Assistance
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Provide safe and secure covered or indoor bike racks or lockers near the main entrance of your facility. Shower facilities add an important amenity for employees that bicycle to the office.

Interested in Commuter Benefits for Your Employees?

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