14/05/2020 12:17 pm
I have a question regarding Parking Allowance, whether it is taxable or non-taxable to the employee. Our company pays for parking for our employees at a rate of $60.00 per month per employee. This has always been a non-taxable fringe benefit (we don't add it in to their income). We have been working from home the last 3 months, and have suspended our parking permits at the local parking garage. A couple employees are returning back to the office. We are going to provide paid parking for one of the employees, but the other employee is going to ride his bike. Can we pay him a non-taxable parking allowance ($50.00/mo) and add that to his net pay as an employee fringe benefit, even if he doesn't pay for parking for his bike? If so, will this be an allowable deduction for the company as well?
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