Companies are catching on the the many advantages of providing commuter tax benefits, including increased employee morale, decreased payroll taxes, and savings for emplyees on the cost of their commute - not to mention the positive environmental impact of creating an incentive for more people to commute by mass transit or other shared means. 


Pre-Tax Benefits: Under section 132 (f) of federal tax law, employees can have a portion of their pre-tax salary set aside to pay for transit and eligible vanpooling and commuter parking expenses up to $105/month or $1,260 a year for transit and eligible vanpools and/or $205/month or $2,460/year for commuter parking.

 

Employers can also offer this benefit as a tax-free fringe up to the same monthly limits. 

 

Employer Advantage: Companies that offer employees the opportunity to use their pre-tax dollars for commuting pay less in payroll taxes and that saves companies money.

 

Employee Advantage: Employees commuting by transit or vanpool can save 30% or more by enrolling in a tax-free commuter benefit program.  Wtih commuter benefits employers can offset the demand for higher wages that follow the increasing price of gas and cost of living by decreasing their employees' commuting costs.