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Commuter Choice Tax Benefits Program
The Commuter Choice Tax Benefits program, based on Section
132(f) of the federal tax code, allows employers to offer employees a
variety of financial incentives for the use of alternative commute modes,
including buses, trains and vanpools and is a valuable addition to any
benefits package due to the advantages for both employees and employers.
Participating employees save on income taxes and expenses associated with
commuting and vehicle maintenance. Employers save on payroll related taxes
and operating costs for parking in addition to benefiting from improved
employee recruitment, retention and morale.
Employers can offer the benefit one of the ways:
1) Giving employees up to $100/month to commute via transit - Employers
get a tax deduction and save on payroll taxes and employees receive up
to $100/month tax free.
2) Allowing employees to use pre-tax income to pay for transit - Employers
save on payroll tax and employees save on income tax or
3) A combination of both up to statutory limits.
Talk to your accountant to set up this IRS approved program. To read
more about Commuter Choice Tax Benefits check out the Commuter
Choice Tool Kit or view pdf from Best Workplaces for Commuters: Commuter
Choice Tax Benefits. You will need Adobe Acrobat or Reader to view
the file.
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