How to get an eligible commuter benefits card Step 1 Reach out to your human resources team or contact your benefits provider. Step 2 Ask whether your employer's benefits plan offers an eligible commuter debit card. Step 3: If available, request instructions for how to get a card. FAQ How to use your commuter benefits card
How do commuter benefits save me money?
Why you should offer commuter benefits to your employees?
- Employees save on commuting costs while employers save on payroll taxes.
- A great benefit that helps attract, retain and reward employees.
- Easy, hassle-free sign up leaves more time for other important tasks
- Helps create a happier, less stressed and productive work environment
How much do you save with commuter benefits?
Commuter Benefits in a Nutshell: A company implements a commuter benefit program. Employees are enrolled to take advantage of the benefit. Employees use up to $270 tax-free dollars to go to work and back. Employees save $700 per year and companies save $40 per month for each employee.
Can I pay for parking with my commuter benefits funds?
You can use commuter benefits funds to pay for parking your vehicle on or near your employer's business premises, or at a location you use to commute to work. However, you can't use funds to pay to park for personal reasons, or for your spouse or dependent to park. Eligible parking expenses include: Parking Meters.
How do I cancel my commuter benefits?
- From the navigation menu, click Employee Self Service, then Payroll and Compensation, then Deduction Information, then click the Commuter Benefits link. The Commuter Benefits page appears.
- Click the Cancel Comm Benft button. A Confirm dialog box displays. ...
- The Confirm dialog box appears. ...
- Your current and pending changes are displayed for your review. ...
How does the commuter tax benefit work?
Commuter benefits are pre-tax. Once enrolled, you have the monthly cost of your commute deducted from your pay before paying taxes. Meanwhile, your employer saves up to 7.65 percent on payroll tax. Spend the benefit on the way you commute; Drivers, for example, can pay for parking costs.
What is a commuting benefit?
Commuter benefits are financial incentives that enable employees to set aside pretax dollars to pay for qualified expenses related to travel to the workplace. Commuter benefits reduce taxable income for employees and payroll taxes for employers.
How do commuter benefits Work NYC?
How does a commuter benefits program debit card work? Certain providers offer a commuter benefits debit card. This card is similar to a credit or debit card and can be used to purchase transit passes only. Money is deducted from the employee's pre-tax income and generally added to the card each pay cycle.
Can I get reimbursement for commuting to work?
Employers may compensate their employees for driving long commutes to work, though the Internal Revenue Service (IRS) doesn't offer deductions for commuting miles. The length of your commute may be a factor you consider when deciding if you want to work for a company.
What happens to my commuter benefits funds when I leave my company?
Any unused commuter benefits funds will be returned to the company's bank account. Per IRS regulations, your employer can't refund your unused commuter benefits funds back to you. However, you can submit claims for eligible expenses incurred during employment for up to 90 days.
Can employer contribute to commuter benefits?
Employers and employees can contribute to an employee's commuter benefits plan. However, your combined contribution must be below the IRS contribution limits, explained later.
Who pays NYC commuter tax?
employersWho Has to Pay the MCTMT? According to the New York Department of Taxation and Finance, employers must file a quarterly return and pay any MCTMT due for a calendar quarter if: They're required to withhold New York State income tax from wages; and. Their payroll expense exceeds $312,500 for that calendar quarter.
Can you use commuter benefits for Uber?
Any Uber rider is eligible to use pre-tax dollars on UberX Share if their employer provides a commuter program. All you have to do is add your commuter benefits card as a payment method on your Uber account before you ride, and make sure to select it when you are requesting during your commute.
Are commuter benefits required in NY?
Under NYC's Commuter Benefits Law, most private and nonprofit employers with 20 or more full-time non-union employees in NYC must offer a commuter benefits program. Employees can lower their monthly expenses by using pre-tax income to pay for transit expenses.
What is the commuting rule?
The IRS Commuter Rule is defined as “transportation between your home and your main or regular place of work.” Your workplace is deemed “regular” if you have worked there for a year, or expect to. Contrary to what many people believe, these types of commutes are considered personal.
How does the IRS define commuting?
The IRS defines commuting as “the cost of transportation between your home and your main or regular place of work” and states that these expenses cannot be deducted from your taxes.
What is considered commuting?
The IRS definition of commuting is “transportation between your home and your main or regular place of work.” The average American commutes over 40 miles a day, but that number increases significantly when you commute more than one hour each way.
What are the benefits of being a commuter?
Commuter Benefits – Tax Savings, Expenses, Advantages, and More. For most people, the transportation costs associated with getting to and from work aren’t in the same ballpark as healthcare costs. Yet, fuel costs, vehicle maintenance, parking fees, transit fares, and other associated expenditures can still add up to a sizeable expense for many.
What is commuter benefit?
What are Commuter Benefits? The formal designation for federal commuter benefits is the “Qualified Transportation Fringe Benefit .”. It consists of a voluntary benefit program, regulated by IRS Code Section 132 (f), that allows employers to provide pre-tax transportation benefits to their employees.
How does a transit card work?
The card connects directly to a specific account funded by employee contributions and deducts the money whenever a purchase is made for commuter expenses. This can help account holders keep better track of their transit purchases, and they don’t have to worry about filing claims for reimbursement.
What are qualified expenses for a commuter?
Qualified expenses include: Riding in a commuter highway vehicle (vanpool) between the employee’s home and place of employment. A transit pass. Qualified parking. At one time, there was a bicycling commuter benefit. However, due to tax reform legislation, the bicycle benefit no longer offers a tax break.
Why do employers save on pre-tax contributions?
Employees save on pre-tax contributions to their commuter plan because it reduces their total taxable income.
What is transit pass?
Transit Pass. Any pass, token, fare card, voucher, or similar item for mass transit (bus, subway, train, ferry) OR a vehicle (operated by a third party) that sits at least 6 people, not including the driver. Parking. Parking lot fees for a lot that is located near the business premises. Commuter highway vehicle.
Do commuter benefits have to be included in payroll taxes?
These qualified commuter benefit expenses offer tax advantages to employers and their employees. Employers do not have to include them as part of an employee’s wages when calculating payroll taxes. Meanwhile, the expenses are excluded from an employee’s gross income for income tax purposes.
Can you give a stipend to employees who travel to work?
If your employees tend to travel to work via taxi or ride-sharing services, you can provide a monthly or annual stipend to help offset the cost of using these services to get to and from work.
Can you give perks to carpooling?
You can offer perks to employees who choose to carpool together. For example, you could give a monthly fuel allotment to groups who regularly commute to work together and help to organize carpooling groups for your employees.
Can a business start with just one employee?
Businesses can start with just one employee. Commuter benefits are also an excellent fringe benefit that will help attract and retain employees. If you want to start saving money on your commute, then you should ask your employer today about signing up for commuter benefits.
Is commuter benefit pre-tax?
Commuter benefits are pre-tax. Once enrolled, you have the monthly cost of your commute deducted from your pay before paying taxes. Meanwhile, your employer saves up to 7.65 percent on payroll tax. Spend the benefit on the way you commute; Drivers, for example, can pay for parking costs.
What are Commuter Benefits?
Commuter benefits give employees the opportunity to use tax-free dollars on commuting costs and keep more of what they earn in their paycheck. Companies that offer commuter benefits
Commuter Benefits eBook
Download our free Commuter Benefits 101 Guide: A complete guide to understanding how commuter benefits work, designed for HR professionals and benefit managers.
Current Commuting Solutions
Public Transit includes bus, train, subway and ferry services. We offer many options to pay for public transit such as our prepaid card, smart cards and transit passes.
Payment Methods
Our prepaid card can be used to pay for public transit, parking, Uber/Lyft, bike share, and e-scooter sharing. It’s fully integrated into your commuter benefits account.
Ordinance
Many cities and regions have recently passed mandatory commuter benefit ordinances.
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Contact our sales team to learn more about commuter benefits and our Wired Commute programs.
Employer Calculator
Employers save an average of $40 per month for each participating employee. If 50 employees participate over 12 months,
What are Commuter Benefits?
Commuter benefits give employees the opportunity to use tax-free dollars on commuting costs and keep more of what they earn in their paycheck. Companies that offer commuter benefits also save money by reducing payroll taxes. Watch this video and see how your company and employees can take advantage of huge savings.
Current Commuting Solutions
Public Transit includes bus, train, subway and ferry services. We offer many options to pay for public transit such as our prepaid card, smart cards and transit passes.
Payment Methods
Our prepaid card can be used to pay for public transit, parking, Uber/Lyft, bike share, and e-scooter sharing. It’s fully integrated into your commuter benefits account.
Employer Calculator
Employers save an average of $40 per month for each participating employee. If 50 employees participate over 12 months,
Commuter benefits overview
Reduce your commuting expenses by taking advantage of commuter benefits. The IRS allows for certain work-related transit and parking expenses to be deducted from your paycheck on a pre-tax basis. Because you do not pay taxes on these expenses, you can save on commuter expenses.
Online ordering model
Use your commuter benefits to purchase qualified products and services.
