This post was provided by Kass & Moses, a team of nationwide bicycle crash attorneys that stand behind the benefits of bicycle commuting. As bicyclists themselves, they wholeheartedly promote bicycle commuting as a way to promote fitness, conserve energy, and further the sport.
Thanks to the The Bicycle Commuter Act, employers can fund a tax-free commuter option ($20 per month) to employees who ride their bicycle to and from work.
Through the act, qualifying expenses include required bicycle maintenance, the initial investment in the bicycle, accessories for the bike (helmets, locks, related gear), and even bicycle parking fees.
Employees must commute from home to work on their bicycle regularly in order to claim the benefit. It should also be noted that individuals are not eligible to claim any additional transportation benefits.
Companies can choose to manage this benefit in a variety of ways. Some companies choose to provide cards that are ticked each day the employee commutes via bicycle. Others provide downloadable forms or logs that the employee can be used to track biking days.
Although there is no set number of days that the bicycle must be used each month, the act states that the individual must commute via bicycle on a regular basis.
Companies can choose to provide cash reimbursement through employee payroll or as a separate cash reimbursement. To learn more about the Bicycle Commuter Act, read IRS Publication 15-B (2016), Employer’s Tax Guide to Fringe Benefits.
Contact us to learn more about this plan and other commuter options: