February, 2001
Q. If
we provide subsidies to our employees for paid parking or bus or transit
passes, must we add these subsidy payments to their wages as income?
A.Under
the Taxpayer Relief Act of 1997, employers can provide and employees
and exclude from income, parking benefits valued up to $175 per month.
If the employer gives the employees a choice of cash or the parking benefit,
the parking benefit remains nontaxable income but taxable if the employee
takes the cash.
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