Offering commuter benefits makes sense for both employees and employers.
Under the federal Qualified Transportation Fringe Benefits allowed in Section 132(f) of the Internal Revenue code, an employer may provide up to $260 a month tax-free to each employee to cover the cost of transit, vanpooling or parking. As of 2018, employers may no longer deduct the cost of providing this commuter benefit.
Employers may allow their employees to set aside up $260 a month before taxes to pay for qualified transportation expenses, such as transit, vanpooling or parking. This benefits both the employer and employee by reducing federal payroll taxes.
The monthly limit of $260 per employee will increase to $265 per employee in 2019. Learn more about the Qualified Transportation Fringe Benefit program here.
Questions about how to implement this commuter benefit at your company? Contact us at 1.866.585.RIDE (7433).