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Commuter Tax Benefits
$230 per month pre-tax payroll deduction
It pays to share the ride! On March 1, 2009, the Federal Stimulus Act raised the pre-tax payroll deduction for transit and vanpool riders to $230 per month, up from $120 in January 2009. Your employees can now apply up to $230 a month toward your bus, rail, or vanpool costs. As defined by IRS Code Section 132(f) (Qualified Transportation Fringe Benefits), you can provide this benefit directly to your employees (by purchasing bus or rail passes or sponsoring vanpools), offer your employees a pre-tax payroll deduction for qualified commute expenses, or a combination of the two.
Bicycle commuters can receive up to a $20 reimbursement for each qualified bicycle commuting month each year (up to $240 each year), which can be applied toward the purchase of a bicycle as well as bicycle improvements, repair, and storage. The bicycle benefit cannot be funded through employee pre-tax income, however, and employees cannot receive transit and bicycle benefits in the same month.
Don’t forget to inform your employees about commuter tax benefits available. For more information about COMMUTER TAX BENEFITS, check out the following resources: