What is a Bicycle Commuting Reimbursement Benefit?

For plan years effective 1/1/2009 and later, employers may reimburse employees up to $20 a month to ride their bicycle to work.

Unlike the transit and parking account options, the Bicycle Commuting Reimbursement option is 100% employer funded. No employee salary reductions are allowed.

Employer reimbursement may be made for expenses incurred by the employee for the purchase of a bicycle and bicycle improvements, repair, and storage, if the bicycle is regularly used for travel between the employee's residence and place of employment.

The maximum monthly reimbursement is $20 per month. The maximum annual reimbursement is $20 multiplied by the number of qualified bicycle commuting months during the calendar year.

A qualified bicycle commuting month is any month that the employee:

(a) regularly uses the bicycle for a substantial portion of the travel between the employee's residence and place of employment, and

(b) does not receive reimbursement from their transit or parking accounts for a transit pass, transportation in a commuter highway vehicle or parking expense.

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