Transit Benefit Program
The Transportation Equity Act is a provision of the Internal Revenue Code that allows favorable tax treatment for employers that offer commuting options to their employees. Under Section 132(f) of the Internal Revenue Code, an employer can provide up to $245 per month to those employees who commute by public transit. The employer can deduct these costs as business expenses and the employees do not report the subsidy as income for tax purposes. In addition, employers are able to offer the cost of a transit pass to employees on a pre-tax basis. Advantages to employers include both a tax deduction for the expense, and savings on payroll taxes, FICA, disability insurance and payments into 401(k) plans. More than 100 area employers offer Metro's transit passes as a workplace benefit to greater than 6,500 employees each month.
Employees- How the Transit Benefit Program Benefits You:
Ride for less with an employer subsidy – If you work for a company that offers the Metro Transit Benefit Program, your cost of a Metro Monthly Pass will be reduced. You’ll be able to get to and from work for a fraction of your current cost.
Save even without an employer subsidy – Even if your employer doesn’t offer a transportation subsidy, they can offer the cost of a Metro Monthly Pass on a pre-tax basis. This will reduce your taxable income. The transportation will cost you less since it is being paid for with pre-tax dollars.
- Reduce auto maintenance and insurance costs – Most people who ride Metro own a car, but they ride because they can save thousands of dollars a year in gasoline and auto maintenance expenses. Plus, commuting on Metro can even lower auto insurance rates, because the insured vehicle is driven fewer miles.
- Save on parking – Riding Metro every day eliminates your parking expense and hassle.
- Avoid Driving in Traffic – MetroLink’s speed and intervals are fixed. There is no "rush hour traffic." It glides along, getting you to work and home on time, regardless of traffic congestion on the roads. And MetroBus riders won't need to worry about driving in bumper-to-bumper gridlock.
- Get more time to yourself – Ultimately, there’s the benefit of simply having more time to yourself. Use the time to suit your personal needs.
You can take advantage of the Transit Benefit Program at your work. Simply ask your Human Resources Department to contact Metro's Marketing Department at 314-982-1400 or email firstname.lastname@example.org
Employers- How the Transit Benefit Program Benefits You:
- Tax savings without an employer subsidy – You can save thousands of dollars in payroll taxes by offering the cost of public transportation on a pre-tax basis.
- Deductions with an employer subsidy – Under Section 132 (f) of the Internal Revenue Code, you can provide up to $120 per month to an employee who commutes by transit or vanpool. You can then deduct these transportation subsidies as a business expense.
- Parking savings – The more employees who commute, the less you need to spend to build, maintain or lease parking. These savings really add up for employers with space constraint problems and growing business campuses.
- Reduce employee absenteeism and tardiness – Employees who ride Metro won’t be plagued with automobile maintenance and breakdown problems. They have a sure ride to work every day, free of traffic congestion.
- Increase employee retention – Employers with better benefits keep better employees. You will realize increased productivity and reduced costs due to employee turnover, while reducing your employees’ cost of transportation.
Save More With Metro's Transit Benefit Program. Getting Started is Easy!
Make your workplace a better place to work – Consider offering Metro's Transit Benefit Program. For more information, contact Metro's Marketing Department at 314-982-1400 or email: email@example.com