Employers

Tax breaks
for your employees
and for you.

Give your employees a tax break on their commute
and get a payroll tax break too!

Join the thousands of employers enjoying the benefits of this tax break

Employers can save on payroll costs when they let their employees use a portion of their salary to pay for their commuting costs.

Under federal tax law* employees can use up to $540 per month of their salary, tax-free, to pay for their commuting costs. That’s $270 a month on transit and vanpooling expenses – and another $270 for commuter parking, such as at railroad stations and parking garages. The end result is a tax savings of up to 40% of their eligible commuting expenses. What’s more, employers don’t pay FICA on the amount employees use for tax-free commuting.

*Internal Revenue Code Section 132(f) Qualified Transportation Fringe

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How it works

The Commuter Tax Benefit is unlike any other pre-tax benefit you offer your employees, like FSAs or HSAs.
With this tax-free benefit, there are zero:

  • Forms to fill out
  • Regulatory reports to file
  • Fixed enrollment periods
  • ‘Use it or lose it’ rules
  • Limitations on whom to offer it

Starting a Commuter Tax Benefit program is easy to do – and can happen at any time of the year. To find out more, get in touch!

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