Commuter Tax Benefits
Did you know you can pay for certain commute costs with pre-tax (Internal Revenue Code Section 132 (F), as amended by TEA-21, Title IX, Section 91) dollars and reap the benefits every day? As of January 1, 2016 under Section 132(F) of federal tax code, an employer can offer its employees up to $255 per month for transit or vanpool costs, and up to $255 in qualified parking costs, and up to $20 for bicycling costs.
Here’s how to take advantage of the benefit:
- Find out if your employer offers Commuter Tax Benefits. Your Human Resources staff should be able to tell you. If they don’t, you can see if they’ll consider offering it. Or, you can contact SNCI 800-535-6883 and we’ll contact your employer about the program.
- If you are driving a van, but your vanpool is not registered with our Regional Ridematch Service, you may be missing out on some of these great benefits.
- Make sure you’re using a qualifying commute alternative. The benefit is available to commuters who are in a vanpool, take public transit or use qualified parking. (Carpooling is unfortunately not a qualified alternative because it is difficult to account for its costs.)
With Pre-Tax Commuter Benefits
Your Employees will:
- Have easy access to pre-tax dollars – up to $255 monthly – for most commuting costs.
- Save up to 40% in transit-related expenses.
- Help reduce carbon emissions by leaving their cars at home.
Your Company will:
- Enhance its wage and benefit compensation without adding to its financial and administrative obligations.
- Bolster its recruitment and retention programs and stay competitive.
- Reduce its payroll taxes.
- Save on costly capital outlays and maintenance of parking facilities.
- Reinforce its commitment to environmental concerns and corporate sustainability.