Businesses and employees can save on parking costs.

Businesses and employees are taking advantage of a federal law to reduce their costs of commuting to work. Section 132 (f) of federal tax code allows employees through tax savings to reduce their parking expenses by as much as 40%, while helping employers save on payroll tax expenses. Employees set aside pre-tax dollars to reimburse their parking expenses, up to a limit of $230 per month. Employers can provide this benefit in place of taxable employee salary, in addition to salary, or both.