Commuter Choice is a nationwide partnership designed to help employers
create customized solutions to their employees' commuting challenges.
Commuter Choice can also include communities working with residents, schools
working with students, and even developers working with future tenants to
provide and promote choices for travelers.
Commuter Choice is a nationwide partnership designed to help employers
create customized solutions to their employees' commuting challenges.
CurrentChoices
Everyone faces a commute that's just a bit different. From what time
they leave home in the morning to the specific route they take, each
commuter must find customized travel solutions to meet their individual
needs.
LocationChoice
Often times, the location and design of an employees' residence and
worksite can have significant impacts on the difficulty and length of
the commute.
Commuter's Choice
Tax-Free Transit Benefit
The
Internal Revenue Code allows employers to offer
their employees tax free commuter benefits up to
specified limits. Transit and vanpool benefits
were tax-free up to $100 per month in 2002.
These programs are financial incentives to
employees, usually encouraging them to switch
from driving alone to transit or vanpool.
Tax-Free Transit Benefit
There are several ways that employers can
provide this employee benefit:
Employer-paid—The
employer directly subsidizes the cost of
transit, typically by providing a transit pass
or voucher to employees; the amount of the
benefit is free of payroll taxes for the
employer and employee, and the employee pays no
federal income taxes on the benefit.
Employee-paid—Also
called a pre-tax deduction, the employer allows
the employee to reserve income on a pre-tax
basis for transit costs. The employer saves
payroll taxes on the reserved income and the
employee saves payroll and federal income taxes.
Combination of the two—The
employer covers part of the cost of transit, and
allows the employee to pay for the remainder
with pre-tax income.
Do you know...
how much you currently pay to commute to work?
Considering the cost of gasoline, insurance,
wear & tear, and parking. The typical commuter
pays over $200 per month. That's over $2,400 per
year, or put differently, the same as a $3,500
raise in your salary!
Calculate your own cost of
commuting,
a service of CommuterPage.com.
