Vanpool Driver Benefits
- Reduces need to purchase a personal vehicle
- Receives use of van for personal use
- Obtains lower vehicle insurance rates
- Reduces household’s vehicle maintenance costs
- Requires no long term commitment (typically month to month lease)
Vanpool Rider Benefits
- Reduces stress as employees arrive refreshed, relaxed, and ready to work
- Increases access to job market
- Reduces walking distance from parking lot to worksite (vanpools often enjoy preferential parking at employer sites)
- Saves money on commute costs such as gasoline, and wear and tear on personal vehicles
- Encourages new friendships
Employer Benefits
- Reduces the need for additional parking
- Increases access to labor markets
- Improves employee morale and employee relations
- Increases productivity, reduces absenteeism and tardiness
- Provides an effective, low cost recruitment tool
- Enhances employee benefits packages (tax free subsidies allowed up to $100 per month per employee)
Community Benefits
- Serves communities not served by transit
- Requires fewer passengers than a bus
- Increases federal and state funds to transit
- Provides a lower cost alternative of serving mid-range and long-distance commuters than transit
- Reduces rush hour congestion (each 12 passenger van reduces up to 11 vehicles)
- Improves air quality
- Reduces dependence on fossil fuels
Commuter Benefits
Internal Revenue Code 132 (f) allows employers to offer participating employees pre-tax deduction for alternative transportation. Employers can reap significant savings as well. The pre-tax deduction could result in the following benefits to employers:
- Tax savings
- Payroll savings
- Reduced disability insurance
- Lower contributions to 401K accounts
- May offer transit passes in lieu of compensation
- May use similar payroll deduction mechanisms to cafeteria plans
- May require annual program election (not required)
- No program filing required
- No “use it or lose it” rule
- Methods of payment options
- Transit passes
- Voucher
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