Thousands of employers are enjoying the benefits of the Commuter Tax Benefit.
Tax breaks for your employees and for you.
Give your employees a tax break on their commute and get a payroll tax break too!
Employers can save on payroll costs by letting their employees pay for commuting expenses with pre-tax salary dollars.
Federal law* allows employers to offer their employees a pre-tax way to pay for commuting expenses. Under the Commuter Tax Benefit, employees can use part of their salary, pre-tax, to pay for transit, vanpool, or commuting-related parking. Employers also have the option of providing a tax-free subsidy to help cover these costs directly.
The Commuter Tax Benefit is a win-win. Employees can save up to 40% on their commuting costs, since the money comes out before federal, state, and payroll taxes are applied, and employers don’t pay FICA on the benefit amount. Learn more about the Commuter Tax Benefit.
*Internal Revenue Code Section 132(f), Qualified Transportation Fringe
How it works
The Commuter Tax Benefit works differently than other pre-tax benefits you may already offer, like FSAs. With this 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 year. CTrides can help you set up the qualified commute options for your employees.