Less tax for your people and less taxing for you.
You can start saving on your payroll taxes, and help your employees pay for their commute with pre-tax dollars. Now through
December 31, 2013, The Federal Government allows a monthly pre-tax commuter benefit of $245 per month. That's a win/win deal!
What's in it for you?
Employers benefit from offering transit benefits by lowering their payroll taxes. Tax-free commuter benefits can be structured as an employee-funded tax-free payroll deduction; as an employer-funded benefit; or the costs can be shared by employer and employee. The benefit can be delivered in the form of transit provider-specific passes or universally accepted vouchers and terminal-restricted debit cards.
What's in it for your employees?
Employees that commute by transit may use up to $245 per month from pre-tax salary. Those using the full amount each month can save up to $1000/year by not paying federal income tax on that salary.
If employees need to pay for parking in order to make their transit connection, the parking fees can be funded with pre-tax dollars up to an additional $245 per month.
