BOSTON, Oct. 17, 2018 /PRNewswire/ -- A pre-tax commuter benefit is when employees can have the monthly cost of their commute deducted from pay before taxes which means more take-home pay and for employers, saving on reduced payroll taxes.
How Employees Save in a Pre-tax Program?
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 commuter related parking up to the monthly limits. By using pre-tax dollars, employees are saving 40% on their commuting costs.
The tax-free commuting dollars are provided on a product, like vouchers, smart cards, debit cards, or paid directly to transit and parking operators, to cover all commuting options and to ensure compliance with the IRS rules for commuter benefits. Right now, employees can use up to $260 a month for transit, and the same amount for commuter related parking.
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.
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
Commuter Benefit Solutions offers programs designed for national organizations, large and medium-sized companies and small business. Each program offers a full range of products for employees and specialized commuter benefits support and service for employees and employers. Ready to start saving? We can help. Contact us today!
▬▬ About Edenred Commuter Benefit Solutions Edenred Commuter Benefit Solutions (ECBS) is the nation's only comprehensive commuter benefit solutions provider and number one resource for commuter savings. Since 1985, ECBS has served Fortune 100 and Fortune 500 companies and top third party benefit administrators.
Our B2B commuter services:
Partners with over 50 national third party administrators (TPAs), 350+ Transit Agencies, 5,000+ parking locations and 650+ bicycle shops nationwide
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