Commuter Benefits Chart
| Expense | Description |
| Transit Pass | Any pass, token, fare card, voucher, or ... |
| Parking | Parking lot fees for a lot that is locat ... |
| Commuter highway vehicle | Any highway vehicle that seats at least ... |
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.
Who is eligible for commuter benefits?
The benefits can be managed in one of three ways:
- Employers pay for an employee’s transit, vanpool, or parking expenses. In return, the employer receives a tax deduction for the amount up to the monthly limit for each commuter.
- Employees pay for their commuter expenses with pre-tax income deducted from their paychecks. ...
- The employer and employee share the costs by combining options one and two.
What commuter car should I buy?
- The fastest car in the neighborhood
- A perfectly balanced car. I could rely on it.
- The most adventurous thing ever!
- One word, S.P.A.C.I.O.U.S
How do you use up commuter benefits?
Spend the benefit on the way you commute; Drivers, for example, can pay for parking costs. Public transit riders — subways, buses, ferries, etc. — apply the pre-tax money to their commutes. You're also eligible if you use a RideShare program like Uber Pool and Lyft Shared.
What does commuter benefits mean on Uber?
You can use eligible commuter benefits cards to pay for UberPool trips when you commute. This means you get more for your money by riding on pre-tax dollars. When paying with your commuter benefits card, you'll be matched to a vehicle that seats 6 or more, which may lead to slightly higher wait times.
How does commuter benefits Save money?
By offering employees a pre-tax commuter benefit program, the cost of commuting deducted for employees reduces the amount of payroll being taxed. This means a savings of up to 7.65% on average, on payroll taxes. The more employees that enroll, the greater the savings.
What is a commuter employee?
Commuter benefits allow employers to support their employees when it comes to their daily commute. Commuter benefits include parking benefits and transit benefits, as well as benefits for vanpool and bicycle commuting.
Can I use commuter benefits card for Uber?
To have your commuter benefits savings pay for Uber, you must use it for the rideshare UberPOOL. You can't use for rides like Comfort, Uber XL and Uber X rides. It's the same deal if you use another ride-hailing service like Lyft, where only the Lyft Shared carpool is available for commuter benefits.
Can you use commuter benefits for Lyft?
WageWorks® Commuter Benefits just keep getting better. Starting today, individuals in Boston, Miami, New York City and Seattle with a WageWorks Commuter Benefits Account can use their pre-tax dollars to pay for Lyft Line rides to and from work.
Is a commuter benefit worth it?
A commuter benefits program can provide savings for both employers and employees. Employers can save by reducing their payroll taxes. The more employees who sign up for transportation benefits, the more the employer can save. Employers can also attract and retain employees by offering transportation benefits.
Are commuter benefits reported on w2?
How do I know that my commuter benefit (pre-tax transit) was properly recorded? It is not a deduction, it is an exclusion from income. The result is the same. If you entered the W-2 correctly, it should be excluded as your employer should have already excluded it from taxable wages on your W-2.
Is commuting to work a tax deduction?
Unfortunately, commuting costs are not tax deductible. Commuting expenses incurred between your home and your main place of work, no matter how far are not an allowable deduction. Costs of driving a car from home to work and back again are personal commuting expenses.
What are commuter expenses?
Commuting expenses are costs that are incurred as a result of the taxpayer's regular means of getting back and forth to his or her place of employment. Commuting expenses can include car expenses, biking expenses, and public transportation costs. These costs are not tax-deductible in the U.S.
What is pre-tax transit benefit?
The pre-tax transit and vanpool benefit is using the employee's own salary before taxes to pay towards their transit or vanpool commute. A transit or vanpool subsidy is when the employer provides employees with a transit or vanpool benefit above and beyond the employee's salary. A subsidy is employer-paid.
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.
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.
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.
What are commuter benefits?
Commuter benefits allow employers to support their employees when it comes to their daily commute. Commuter benefits include parking benefits and transit benefits, as well as benefits for vanpool and bicycle commuting. When an employee enrolls in a commuter benefits program, they can pay for their commuting costs with pre-tax money, ...
Why do employers offer commuter benefits?
Top reasons to offer commuter benefits: Employees save on commuting costs while employers save on payroll taxes. Attract, retain and engage employees. Create a happier, less stressed and productive work environment. Easy, hassle-free sign up leaves more time for other important tasks.
How much do you save on transit?
On average, employees save $700 each year, or more when they set aside up to $270.00 a month to pay for transit commuting expenses. Based on current legislation, your company can offer commuter benefits in the form of tax-free employer-paid subsidies, pre-tax employee-paid payroll deductions, or a combination of both.
How much does a commuter benefit save?
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.
What are some examples of tax free benefits?
For example, their tax-free dollars can be provided to pay for their commuting costs using: Vouchers. Smart Cards.
Is commuting a decision making factor?
With time and costs to get to work continuing to increase, commuting remains a major decision making factor for employees when accepting an offer or changing jobs. When it comes to the total benefits package, employee expectations are changing. The benefits you offer need to keep up with those expectations.
Is Vanpool a tax benefit?
Although there are no tax benefits to employers who offer biking, it is a great perk to offer for employees who may bike to work.
What is commuter benefit?
Commuter benefits, as the name implies, are benefits offered to employees that have some relation to the costs and hassle of commuting to the workplace. They’re also known as transportation benefits or transit benefits. (Note: “Commuter benefits” most often references the specific benefits that are offered on a pretax basis, ...
Why do employers offer commuter benefits?
These types of benefits can offset a frustrating commute and make it easier for employees to afford the costs associated with coming to a central location.
Is commuter benefit taxable?
As noted above, some types of commuter benefits can be offered to employees on a pretax basis. This means the cost or reimbursement is not considered taxable income. Here are the types of commuter benefits that can be offered on a pretax basis per Internal Revenue Service (IRS) regulations:
Can you offer commuter benefits on a pretax basis?
It can also show that the employer recognizes many employees’ preference not to have to commute and be a consolation when remote work isn’t an option. Many commuter benefits can be offered on a pretax basis, so they can also reduce the employee and employer tax burden. And encouraging employees to utilize public transportation can result in less ...
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.
Ready to Get Started?
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,
How many hours do you have to work to get commuter benefits?
For instance, you must offer commuter benefits if you’re an employer: In the San Francisco Bay Area with 50 or more full-time (at least 20 hours per week) employees. In San Francisco, with 20 or more full-time (at least 10 hours per week) employees nationwide. In Berkeley, with 10 or more employees who work at least 10 hours per week.
What states offer commuter tax credits?
For instance: In Washington, employers who provide commuter benefits may also claim a tax credit of up to 50%, in addition to saving on state payroll taxes. Maryland and Minnesota also offer employer tax credits of 50% and 30% respectively.
What is fringe benefit for transportation?
Under Federal Law, qualified transportation fringe benefits consist of: Transportation in a commuter highway vehicle if such transportation is in connection with travel between employee’s residence and place of work. Transit pass (subject to certain requirements) Qualified parking.
Can you use your own pretax income for commuter benefits?
However, state requirements remain in effect, and employees may continue to use their own pretax income for commuter benefits, via employer-provided salary reduction programs.
Is commuter income subject to federal taxes?
Employee income that is set aside for commuter benefits up to the federal maximum is not subject to federal income or payroll taxes. Depending on how an employer offers commuter benefits, funds can be delivered to and used by employees in a number of different ways, including:
Is transportation fringe taxable?
For employers and employees, benefits that qualify as “transportation fringe benefits,” under the law are not a part of an employee’s taxable wages. These commuter benefits are exempt from federal income and payroll taxes. Under Federal Law, qualified transportation fringe benefits consist of:
Can I deduct commuter benefits?
Depending on your location, you can contribute to your employees’ commuter benefits, have employees deduct commuter funds from their pay and purchase passes themselves, or offer a combination of the two, all pre-tax.
How does a commuter benefits account work?
What is a Commuter Benefits Account? A commuter benefits account is an employer-sponsored benefit program that allows you to set aside pre-tax funds in separate accounts to pay for qualified mass transit and parking expenses associated with your commute to work.
What are the benefits of a commuter benefits account?
Tax Benefits Contributions to a commuter benefits account are deducted from your paycheck on a pre-tax basis, reducing your taxable income. You can save an average of 30%* on your eligible transit and parking expenses.
What expenses are considered eligible?
Qualified Mass Transit Expenses Items that qualify as a mass transit expense include transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail, or ferry.
How can I contribute to my commuter benefits account?
There are monthly limits set by the IRS for Commuter Benefits. Your employer may decide to limit these amounts. Check with your employer to determine your maximum contribution limits. Currently, contributions for transit and van-pooling are limited to $265 per month. Parking contributions are limited to $265 per month.
How do I access my commuter benefits account funds?
Payment Options You authorize your employer to deduct a pre-tax amount for parking and/or van pooling/transit throughout the year, up to the IRS limits. You pay for the qualified transportation with your benefits debit card or you can pay out of pocket and then file a claim for reimbursement.
