Dive Brief:

• Under current law, employers can provide employees with a tax-free reimbursement of up to $20 a month to cover reasonable expenses incurred in conjunction with their commute to work by bike, according to an article at Bloomberg BNA.
• The benefit isn’t without its limitations, and employers probably have to look beyond that whopping sum of $240 per year to get employees to start pedaling to the office, but at least it’s something, writes BNA's Dori Goldstein
• In order to qualify for the tax-free benefit, employees must regularly bike to work during the month they receive the reimbursement. In addition, employees can’t receive the bike benefit in any month they receive parking or transit benefits, Goldstein writes.

Dive Insight:

While bike benefits may not be for every employer, those that can take advantage might want to take a look into it.

Goldstein writes that there’s legislation working its way through Congress that would expand the bike benefit to allow employees to use the $20 per month toward membership fees in bike-sharing programs, which allow people to rent bikes and drop them off at other locations.  If the legislation passes, it may encourage additional people to opt for a two-wheeled commute in places that offer bike sharing.

In the meantime, Goldstein suggests that employers offer perks including bike parking, showers (maybe partner with a nearby gym or fitness center), safety training programs and recognition and rewards, to bring positive attention to this commuting option. In addition, employers can hold “bike-to-work days” to encourage more employees to give it a try, she writes.