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 the qualified transportation tax incentive
Employers can save on payroll costs by letting their employees use a portion of their salary to pay for their commuting costs.
Federal law* allows employers to provide their employees with a tax-free way to pay for their commuting expenses. Under the Commuter Tax Benefit, employers can let their employees use their salary on a pre-tax basis to pay for commuting expenses when they use transit, ride in a vanpool, or for commuting parking. Employers also have the option of providing a tax-free subsidy to help their employees with these commuting expenses.
The qualified transportation tax incentive is a win-win.
Employees can also save up to 40% on their commuting expenses, and employers don’t pay FICA on the benefit amount. Click here for more information on the Commuter Tax Benefit.
*Internal Revenue Code Section 132(f) Qualified Transportation Fringe
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. Get in touch to learn more!!