Tax Benefits

A significant benefit to having a commuter program is the tax benefit. While we’re not tax experts in any way, there are tax savings for both employers and employees through a commuter program.

 

For Employers:

• Allow employees to use pretax dollars to pay for transit passes, vanpool fares and parking. Supporting the use of pre-tax dollars reduces an employer’s FICA taxes, since there is less taxable income.

For Employees:

• Having transit costs removed from your paycheck pre-taxes, like a health-savings account, saves on taxable income. This is an increase of your take home pay.  Commuters can receive both transit and parking benefits.

 

Some of the benefits available to commuters changed slightly with the recent tax law changes, but for the most part it remained intact.

 

Here are some links to sites that explain the tax benefits and details of a commuter program that are part of transportation fringe benefits under Section 132(f) of the IRS Tax Code.

 

• https://www.bestworkplaces.org/resource-center/faq-on-qualified-transportation-fringe-benefits/
• https://www.bestworkplaces.org/commuter-benefits/irs-update-for-2018/
• http://gacommuteoptions.com/How-We-Can-Help/Tax-Benefits
• http://www.nctr.usf.edu/programs/clearinghouse/commutebenefits/
• http://actweb.org/irs-releases-publication-15-b/
• https://www.theverge.com/2018/2/5/16974036/lyft-line-pretax-money-benefit-us-cities

 

To learn more how OneCommute’s solutions help your organization earn tax benefits click the button below to learn more.

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