Parking Cash Out

What Is Parking Cash-out?
Parking cash-out is a commuter benefit in which an employer offers an employee the option to accept taxable cash income instead of a free or subsidized parking space at work.

Given the option to take cash instead of a parking space, many employees will take the cash and choose to carpool, take transit, or walk or bike to work. In fact, the average reduction in solo driving to work as a result of a parking cash-out program is 20%.

Parking cash-out encourages alternatives to driving alone to work without taking away the existing parking benefit.

The Benefits

• Reduce the need for employee parking and costs associated with leasing parking spaces
• Allow businesses to convert employee parking spaces to customer parking spaces
• Allow businesses to convert parking spaces into revenue-producing activities
• Eliminate the need for new parking construction
• Provide employees with a choice of benefits that are more equitable to alternative commuters
• Reduce employee’s commute related stress, aid in recruitment and retention, and improve our quality of life in the Triangle by being part of the solution to reduce congestion and air pollution
• Offering a parking cash-out may qualify you to become a Best Workplace for Commuters

When Parking Cash-out Makes Sense
Any employer who makes subsidized parking available for employees can offer a parking cashout. Parking cash-out tends to be most effective when the employer leases parking spaces and is able to let go of unused spaces without penalty from the lessor.

Employers that own their own parking could make a parking cash-out work if they were able to convert employee spaces into customer spaces or lease out unused spaces. Parking cash-out also makes sense for employers who are considering building or leasing additional parking space. It may be easier to offer employees cash for not parking rather than acquiring new parking facilities.

Parking cash-out works best in downtown locations with good transit access, but may also work in suburban areas with a shortage of parking.

TTA Can Help You
The Triangle Transit Authority (TTA) can help you analyze your current parking conditions and policies to determine if parking cash-out will work for your organization. The TTA will also work with your staff to implement the program, reduce adverse payroll tax impacts, and promote it to your employees.

Call Amy Armbruster at the TTA at 919-485-7478 today to learn more.