It's a start...$ for commuting- Mtbr.com
Results 1 to 6 of 6
  1. #1
    Fatback
    Reputation: thirstywork's Avatar
    Join Date
    Dec 2006
    Posts
    705

    It's a start...$ for commuting

    Check this out:http://www.bicycle.net/2008/senate-b...ikers-for-20mo
    It is in ADN's life section today, but I'm not savvy enough to find the article there.
    Speedway Cycles owner http://fatbackbikes.com

  2. #2
    mtbr member
    Reputation: Funrover's Avatar
    Join Date
    Oct 2006
    Posts
    3,835
    Yeah I have heard this, my problem now it convincing the company I work for that they need to do the paperwork!

  3. #3
    mtbr member
    Reputation:
    Join Date
    Jan 2006
    Posts
    69

    Not as good as it sounds....

    I approached my company and our accountant did some research:

    It looks like there's much less to this then people may be thinking. This provision simply allows a company to provide some level of compensation to employees for bicycle commuting, without the compensation being added to the employees' taxable income. In other words, it would be a tax-free benefit. It would, however, require the company to actually provide new and additional benefit payments to its employees. So, it would still cost the company to provide this benefit. I doubt that HR will go for this for two reasons, 1) I suspect that the number of employees who would actually derive a benefit from this is very small, and 2) The company is already providing a commuting benefit in that they are paying for employee parking spaces.

    So, it requires each company to provide any cash benefits they want to an employee, it just becomes non-taxable income.

  4. #4
    mtbr member
    Reputation:
    Join Date
    Sep 2007
    Posts
    19
    Dave (Hart) is exactly right....plus the compensation for bike commuters cannot exceed $20/month or $240/year! Much ado about nothing. I guess the guv'mint needs to keep its money to subsidize AIG executive retreats and severance packages.

  5. #5
    Diaskeuast
    Reputation: Big Karma's Avatar
    Join Date
    Mar 2005
    Posts
    575
    Quote Originally Posted by Jacquesboutet
    the compensation for bike commuters cannot exceed $20/month or $240/year! Much ado about nothing.
    Much ado about nothing for those of us who read bike forums and see $240 as a dent in our annual bike-maintenance costs, but it might make a nice difference for people on the margin who see $240 as half the price (or more) of a bike they can ride to work.

    These kinds of extras should never have been attached to the bailout package to begin with, but if it was going to be done, I'm at least glad they threw a bone to bike commuters. That's more than the government typically does for our cause.

    Maybe the few extra bucks will get a few more people riding to work, even if they'll never be hardcore cyclists.
    Enjoying the meaningful pursuit of meaningless fun.

  6. #6
    mtbr member
    Reputation:
    Join Date
    Sep 2007
    Posts
    19
    I take Big Karma's point-- every dollar counts. But I own a small business and offer benefits to my employees. Let me assure you that the paperwork involved in implementing this benefit will ultimately cost me thousands of additional dollars in government filings, employee education, payroll tracking, accounting and increase the likelihood that I'll have to spend $10,000 or more surviving an IRS audit.

    It would be easier and cheaper for me to simply hand my employees a $240 annual bonus to spend as they see fit....something I already do, except that our bonus checks are an order-of-magnitude higher.

    My point is this: if the government really wanted an approach like this to incentivize bike commuting, they would have created a program that actually made business sense. What they've done instead is offer up a feel-good illusion of a program that will get exactly nowhere.

Members who have read this thread: 0

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

THE SITE

ABOUT MTBR

VISIT US AT

© Copyright 2019 VerticalScope Inc. All rights reserved.