Your company can also deduct up to $130 per month for vanpooling costs from employee paychecks before taxes. As a result, your company saves on payroll taxes and your employees don't pay income taxes on those costs.
Providing benefits in lieu of salary will not increase costs to employers; it will reduce their payroll costs since payroll taxes do not apply to these benefits. Pre-tax payroll deductions are referenced in IRC Section 132(f), as amended by TEA-21, Title IX, Section 910. Also check with your tax advisor.
Commuter Choice Toolkit: Federal Transit Administration guide to assist employers with establishing a qualified fringe benefit commuting program for vanpools.