With the DC Parking Cashout Law reporting deadline approaching on January 15, 2024, employers across the District are asking: do I need to report my compliance this year? To make this confusing time easier, we’ve put together a quiz to answer that question based on your company situation.
Not a fan of quizzes? Or want to check out reporting requirements for different situations? Read on to learn more about who needs to report to DDOT by January 15, 2024.
If you’ve never reported before
If you want to change your compliance option
If You've Reported Previously:
If you reported previously (e.g., in 2023), you will need to comply in the following ways depending on which compliance option you chose:
Offered a Clean Air Transportation Fringe Benefit (Parking Cashout)
Since you reported in 2023, you do not need to file a report in 2024. Your next reporting deadline will be January 15, 2025.
Continue to offer the Clean Air Transportation Fringe Benefit to employees who are offered parking. As a best practice, remind employees of their choice annually – we recommend during Open Enrollment. According to the Parking Cashout Law, an employee may amend their Clean Air Transportation Fringe Benefit election once every 12 months. It is a good idea to keep track of which employees are receiving parking benefits and which employees are receiving the Clean Air Fringe Benefit.
Resources
Clean Air Transportation Fringe Benefit Opt In/Out Worksheet
Clean Air Transportation Fringe Benefit Email Template
Clean Air Transportation Fringe Benefit Guide
Developed and Implemented a TDM Plan
By January 15, 2024, employers with an approved TDM plan from 2023 must:
- Input the strategies they created for last year's TDM plan into the new reporting platform.
- Conduct an annual commute survey and submit their results that show a 10% reduction in drive alone rates (or that their drive alone rate is 25% or less). This year, you can now conduct your annual commute survey through the reporting portal.
If the employer does not initially meet the 10% reduction requirement, they will have an additional 180 days to reduce the drive alone rate. At that point, it is recommended that the employer reach out to goDCgo for assistance in reducing their employees’ drive alone rate to meet the requirements. If the employer has not met the 10% reduction after 180 days, they will have to select another compliance option and submit via DDOT’s reporting system.
Paid the Clean Air Compliance Fee
If you chose the Clean Air Compliance Fee option and paid for two years (2023 & 2024), you do not need to file a report in 2024. Your next reporting deadline will be January 15, 2025.
If you chose the Clean Air Compliance Fee option and only paid for one year (2023), you must repeat the process you completed in 2023. You’ll need to make a payment to the DC Treasury for the Clean Air Compliance Fee for 2024, of $100 per month/per employee offered a parking benefit this year, and submit your proof of payment (copy of check) through the reporting dashboard by January 15, 2024.
You Reported an Exemption
If your exemption has not changed (lease hasn’t expired, haven’t sold your parking, campus plan hasn’t expired, etc.), you do not need to file a report in 2024. Your next reporting deadline will be January 15, 2025.
If your exemption has changed or expired, you will need to report your updated exemption or compliance option by January 15, 2024.
If You’ve Never Reported Before:
First, determine if you are required to report to DDOT - all District employers with 20 or more covered employees need to report. A covered employee is a part-time or full-time employee who works in a District of Columbia office or on a hybrid schedule where at least 50% of their working time is in the District of Columbia.
Next, determine if you qualify for an exemption. If so, you’ll need to report it with proof of the exemption through DDOT’s reporting dashboard.
Exemptions include:
- Employers that own their parking and owned it before October 1, 2020.
- Employers that lease parking and the lease began before October 1, 2020, until the lease terms are up, regardless of possible extensions.
- Employers that have transportation demand management plans reviewed by DDOT before October 1, 2020, until the plan expires or until October 1, 2025 - whichever is earlier.
- Hospitals and universities with Campus Plans before October 1, 2020 until the end of the current term of the campus plan, regardless of any contemplated extensions.
- Employers who do not offer, or stopped offering, free, subsidized, or reimbursed parking.
If you do not qualify for an exemption, you must comply with the law in one of the following ways:
1. Offer a Clean Air Transportation Fringe Benefit
Often referred to as the Parking Cashout option, employers can offer employees the choice to receive a Clean Air Transportation Fringe Benefit (such as a transit or vanpool subsidy plus additional compensation) equal to or greater than the market value of their parking spot in exchange for giving up their parking benefit.
Reporting: Every two years, employers must submit a report to the District Department of Transportation providing a breakdown of the number of employees offered and accepted benefits under this option. If you have not reported before, please report by January 15, 2024.
2. Develop and Implement a Transportation Demand Management (TDM) Plan
TDM plans must reduce single occupancy vehicle commuting by at least 10% from the previous year until 25% or less of employees’ commuter trips are made by car.
Reporting: TDM Plans must be submitted by the reporting deadline of January 15, 2024, and will then be reviewed and approved/rejected by DDOT. Rejected plans will have a chance for revision and resubmission. Within 90 calendar days of the approval, the employer must provide DDOT with evidence demonstrating the employer’s implementation of the plan. The employer must submit their commute survey results annually and an updated TDM Plan biannually.
3. Pay a Clean Air Compliance Fee
Pay the District Department of Transportation (DDOT) a fee of $100 per month, per employee offered parking benefits. Payments must be made in yearly increments.
Reporting: Proof of payment must be reported annually or biennially (depending on if you choose to pay for one year or two) in DDOT’s reporting dashboard.
Compliance Tip: Discontinue Free or Subsidized Parking
By discontinuing free, reimbursed, or subsidized parking, you remove the criteria that requires you to comply with the law. Out of all the options, removing parking benefits is the quickest and most cost-effective way of complying with the law. Note: If you choose this option, you still need to report that exemption to DDOT this year, in 2025, and every two years thereafter.
If You Want to Change Your Compliance Option this Year:
You may choose a different compliance option annually. Since you’ll be starting from the beginning with the new compliance option, follow directions for those that have never reported in the section above.
Get Help from goDCgo
If you need help navigating the compliance options, schedule a complimentary meeting with a goDCgo Employer Services representative. They’ll walk you through the necessary steps to report your organization’s compliance. Employers can also find Parking Cashout resources such as our toolkit, FAQs, templates, and more on our employer services page.
