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FLEXPARK What is FlexPark? The FlexPark program provides employers an opportunity to offer a new choice to employees that currently drive alone to work and get "free" parking from their employer. With FlexPark, the employee can choose to either keep their parking space or take the equivalent value of that parking space in cash or some other package of incentives. FlexPark is about flexibility. Employers have flexibility in defining the package of benefits they want to offer to employees. Employees often receive options that greatly enhance commute flexibility. The elements of a FlexPark program are limited only by your imagination, but commonly include some of the following: Cash Bus pass subsidy Flexcar membership Home Free Guarantee Occasional parking day benefit What are the benefits of FlexPark? To Employers: offers a way to encourage high-occupancy vehicle (HOV) commuting to the worksite increases flexibility in managing transportation expenses To Employees: opportunity to choose between transit passes, cash or paid parking offers added monthly "income" in areas where parking costs are high decreases expenses associated with driving personal car (insurance, wear and tear, etc.) How much does FlexPark cost? Employers implementing FlexPark usually spend the same amount as they are spending on parking, or less, depending on the package they offer to their employees. When an employee accepts the FlexPark alternative, the employer can stop leasing that space. And when parking costs increase, the employer does not incur that additional costs because their expenditure is no longer affected by external market forces. How does a company administer a FlexPark program? Many companies have found FlexPark easy to administer through simple payroll changes. Administration needs will depend on how a company structures the program. Currently, there are no state or federal regulations on how any cash incentive can be spent. Employers decide for themselves whether or not to place restrictions on the use of the funds. What are the implications of cashing out employee parking? While any cash payment is a business deduction for the employer, it also represents an increase in FICA taxes for the company. The employee receives the advantage of cash-in-hand, but must pay an increase in both FICA and federal income taxes. Other elements can be included in the package, such as bus pass subsidies, which are tax-free. Additional information on tax implications can be found at www.commuterchoice.com and from your tax advisor. For additional information, e-mail employer.programs@metrokc.gov or call 206-263-3444.