For Employers

Are you an employer within downtown Ann Arbor or Washtenaw County? Many businesses are encouraging their employees to commute to work by biking, walking, ride sharing, or taking the bus.

Here are a few reasons why businesses should support these commuting options:

  • Boost employee health and wellbeing 
  • Move closer toward achieving your businesses' environmental goals
  • Take advantage of financial savings through tax benefits for your business and employees

 

Business Services

TheRide offers a number of free business services to help you create and implement a commuter plan that meets your unique needs.

This includes:

  • Commuting consultation
  • Transportation education and outreach
  • Bus pass programs
  • Ride sharing services and incentives
  • Employee and tax benefit support
  • Parking solutions
  • Environmental solutions

For more information, send us an email.

 

Employer-Sponsored VanRide

Through the VanRide program, TheRide will provide a group of employees with a new or near-new vehicle. VanRide is available to anyone traveling to a work site located in Washtenaw County, including those who live outside county lines.

Learn more about VanRide

TheRide can help you organize VanRide as an employee benefit. Your business can choose to handle all or none of the administration or vanpool membership fees. Businesses can choose to share in the cost of the vans, set up pre-tax benefit programs, or administer the program internally. Business pricing is determined by these factors.

We can work with your business to create a commute benefits package, which can include offering low cost vanpool benefits. These benefits may qualify you to join the Best Workplaces for Commuters program. This program recognizes employers who voluntarily meet the National Standard of Excellence in employer-provided commuter benefits.

Tax Benefits

Take advantage of tax deductions and credits at both the state and federal level. 

Businesses can make direct payments toward vanpools on behalf of their employees.

For 2021, your business can deduct up to $270/month before taxes from employee paychecks to pay for vanpooling costs. This helps you save on payroll taxes; in addition, employees do not pay income taxes on those costs. This amount can be split between your business and your employees.

Providing benefits in lieu of salary will not increase costs to employers; it will reduce their payroll costs. Pre-tax payroll deductions are referenced in IRC Section 132(f).

Check with your tax advisor prior to implementing these benefits.

All federal employees are eligible for transit and vanpool benefits. If you are a federal employee and interested in receiving transportation benefits, contact your human resources office and ask for your transportation coordinator. Each agency and military branch has slightly different rules for the application of the benefit.

University of Michigan campus sign

U-M Vanpool Program

U-M partners with TheRide's VanRide program to offer vanpooling for its faculty and staff. U-M shares in the cost of the van and provides a pre-tax incentive to eligible employees.

U-M Vanpool Details