What can employers do to help employees with the high price of gas?

The high price of gas has employees concerned about the money they are spending on getting to work. One way employers can help is by providing qualified transportation fringe benefits in the form of transit passes. A transit pass can be used to cover or reduce the cost of transportation on mass transit facilities (rail, bus and ferry) or in certain vehicles for hire.

In areas where there are readily available transit media (such as a ticket or pass), an employer must purchase the ticket or pass and distribute it to the employee. Thus, if a transit pass is readily available, an employee must receive an actual pass and not a cash reimbursement. (See ¶44,200 for more information about qualified transportation fringe benefits.)

Here are some other ways employers can help workers cope with high gas prices:

• Raise the company's mileage reimbursement rate to the IRS maximum.

• Organize a carpooling/ridesharing program, and provide employees with incentives to use it (such as priority parking).

• Offer alternative schedules, such as condensed workweeks (four 10-hour days).

• Allow telecommuting.

• Give employees the option to work at offices that are closer to their homes.

• Give gas cards as performance incentives.

• Organize a bike-to-work program.

• Provide cost-of-living raises to account for the higher price of gas.

• Provide stipends to employees with long commutes.

• Offer employees incentives to buy hybrid vehicles.