Commuter Tax Benefits: Save Money When Traveling To & From Work

What are Commuter Benefits?

Commuter benefits provide employees and employers with tax benefits to help pay for mass transit, vanpooling, and work-related parking expenses associated with commuting to and from work. In addition, they help employees and employers save on monthly commuting costs while giving employers a way to help offset the expenses associated with their employees’ daily commute.

These are great transportation benefits for employees looking to pocket more money from each paycheck.

How Does It Work?

The Transit Benefit Law provides employers with a monthly tax-free transit allowance of $300 per employee to support the use of public transit. This tax advantage allows employers to subsidize part or all of their employees' bus fare. In doing so, employers enjoy a nice tax savings in addition to helping to defray their employees' commuting costs. Alternately, employers may opt to offer employees the option of paying for their transit costs using pre-tax dollars of up to $300 per month with no added cost to the employer.

What’s the benefit as an employee?

• Set aside pre-tax dollars to help pay for expenses related to commuting to and from work.
• Reduced transit costs are incurred by employees using Centro transportation.
• Both driving and non-driving employees can reduce their transportation costs, which may help improve morale.
• Eliminate gas, parking, maintenance, and miscellaneous costs associated with driving to and from work.
• Experience a more convenient and less stressful commuting method.

 
What's the benefit as an employer?

• Based on current legislation, employers can offer commuter benefits in the form of tax-free employer-paid subsidies, pre-tax employee-paid payroll deductions, or a combination of both.
• Offering employees the option of taking the bus to work can increase the amount of available parking for your customers and clients.
• Commuter benefits can be used as a recruiting aid and can even help boost morale.
• Employers have the opportunity to provide equal support to employees who drive to work, as well as those who don’t.

To learn more about the Commuter Tax Benefit visit the following website.

 
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