Parking Cash Out
Employers may establish a Parking Cash Out program whereby employees may "cash out" the value of their employer-provided parking, by choosing to forego a parking space and instead receive the taxable cash value of the space or a tax-free transportation fringe benefit for transit or vanpool expenses, up to the IRS monthly maximum for that year.
Parking cash out works like this: the employer establishes a monthly value for a parking space at its site. Each employee could then choose among various commuting options in the following manner:
Note that if an employee chooses cash instead of a tax-free transit or vanpool benefit, they will pay payroll and income tax on the amount, and the employer will incur payroll taxes.