Parking, taxable benefits and car pooling

Annie Chong, manager of the payroll consulting group at Carswell, fields questions from readers
By Annie Chong
|Canadian Payroll Reporter|Last Updated: 08/07/2012

Who incurs taxable benefits when carpooling — the driver or the passengers?

Question:

Some of our employees have set up car pooling to save on commuting costs for work. We provide free parking to our employees. It is a taxable benefit. Currently, for the employees who car pool, we assess the taxable benefit on the employees who own the car. Recently, some of the employees who do the driving have asked us to divide up the taxable benefit among all the people who take part in the car pooling, whether or not they are the drivers. Are we allowed to do this?