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 ... |
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.
Why are commuter buses a great commute option?
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 do I apply for the transit benefit program?
- DOI Approving Official System Training
- Transit Benefit Program Application System
- DOI-OS Transit Benefit Program Application Guide
- DOI-OS Transit Benefit Program Approving Official Guide
- Proxy Authorization Letter
- Transit Subsidy Integrity Training (Link to DOI Learn)
- DOI Learn Downloadable CD
What is an eligible commuter benefits expense?
- Mass transit facilities, such as train, bus, or subway stations
- Commuter highway vehicles
- Vanpools
Is a commuter benefit worth it?
How Employers Save Offering a Pre-tax Program ? 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 transit benefit?
Transit benefits, also known as transportation benefits or commuter benefits are a very attractive and valuable component of a company's benefits package. When employees participate in this voluntary program, they use tax-free dollars to pay for their eligible transportation expenses.
What is a commuter transit account?
A Commuter Account is an employer-sponsored benefit that allows you to pay for qualified workplace mass transit (Transit Account) and parking expenses (Parking Account) using money that is not taxed. It's a great way to put extra money in your pocket each month and make your commute more convenient and affordable.
Are transit benefits use it or lose it?
The pre-tax transit or vanpool benefit is not a "use it or lose it" benefit. It is intended to be deducted and used each month. However, since employers capture the payroll deductions upfront, the employee uses the deductions on a rolling basis.
Can I use commuter benefits 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.
Can commuter benefits be refunded?
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 I use commuter benefits for FasTrak?
The multibridge commuter discount is a benefit for Bay Area FasTrak customers who cross multiple state-owned bridges within one day. State-owned bridges include Antioch, Benicia-Martinez, Carquinez, Dumbarton, Richmond-San Rafael, San Francisco-Oakland Bay and San Mateo-Hayward Bridges.
How much should I contribute to commuter benefits?
You can set aside up to $280 per month on transit expenses and up to $280 per month on parking expenses. The IRS reviews this amount yearly, setting higher limits with an average of a $5 increase each year.
Does commuter benefit expire?
Commuter benefits funds do not expire unless you leave your company. These funds will continue to rollover month to month, year to year, as long as you're still at the same company. However, when you leave the company, any unused funds in your account will be returned to the company.
What happens to unused transit FSA funds?
Under federal rules, any unused funds for transit benefits cannot be returned to commuters, though the money can usually be rolled from one year to the next depending on an employer's specific plan. Some employers may charge fees to do so.
Are commuter benefits reported on W-2?
If your pre-tax commuter benefits were deducted from your pay, they are not included in your Box 1 Wages on your W-2 and you don't need to report anything. There may be a notation in Box 14, but this does not affect your tax return. Click this link for more info on Commuter Benefits.
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.
What is a transit pass?
Transit pass: A transit pass is any pass, token, fare-card, voucher, or similar item entitling a person to ride, free of charge or at a reduced rate, one of the following 1) On mass transit, or.
What is a qualified parking?
Qualified parking: Qualified parking is parking you provide to your employees on or near your business. It includes parking on or near the location from which your employees commute to work using mass transit, commuter highway vehicles, or carpools.
Does commuter benefit include parking?
It does not include parking at the employee’s home. Also, commuter benefit plans allow participants to make contribution changes on a monthly basis. Employers have the choice of allowing members to make monthly changes when necessary or choosing to have participants contributions fixed for an entire plan year.
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 a pre-tax commute benefit?
The IRS Code, section 132 (f), allows employees to use pre-tax salary towards their transit and vanpool commuting costs.
How do commuter benefits work?
When an employee enrolls in a pre-tax commuter benefits program, they will provide the amount of their monthly commuting cost for transit and/or commuting-related parking up the monthly limits.
Can commuter benefits also benefit the employer?
Yes, commuter benefits also benefit the employer! By offering employees a pre-tax commuter benefits program, the cost of commuting deducted for employees reduces the amount of payroll being taxed.
Is the pre-tax transit and vanpool benefit the same as a transit or vanpool subsidy?
No. The pre-tax transit and vanpool benefit uses the employee’s own salary before taxes to pay toward the commute funding. A transit or vanpool subsidy is when the employer provides employees with a transit or vanpool benefit above and beyond the employee’s salary.
Are there benefits for cycling?
Earlier this year, a revamped Bicycle Commuter Act was introduced in the US House of Representatives. It would ensure bike commuters get pre-tax commuter benefits similar to those who drive and park or take public transportation to work.
What is vanpooling?
Vanpool is a perfect way to get to and from work for those who travel more than 15 miles to work one-way. Passengers share a ride in a van that seats five to 15 people and pay a monthly fee that covers the cost of fuel, insurance and vehicle maintenance.
Is there a pre-tax benefit for vanpooling?
Yes! The IRS allows employers to withhold a set amount of employee’s pre-tax income for vanpool commuting costs. This lower’s the employee’s taxable income, which puts more money into their pocket.
Why use Transit Chek?
Use TransitChek benefits to save money. The IRS allows employees to set aside money for their commute -tax-free. With commuting and gasoline costs continuing to rise, TransitChek commuter benefits program can significantly reduce the burden of these increased costs.
How much can I deduct for transit?
The IRS sets a monthly maximum amount that you can deduct pre-tax, currently $270 for transit and $270 for parking. Tax savings on your commute means more of your money in your pocket. Save up to $954/year* on subway, bus, train, ferry, and vanpool. on parking expenses.
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.