There are many ways to implement or improve an existing commuter benefit program at little or no cost – offering certain employee benefits can actually save your company money.
Corporate Tax Benefit Information
Under the Transportation Equity Act, IRS code 132(f), and California state law, employers are allowed to offer payroll tax savings for transportation assistance — up to $130 a month per employee for transit passes or vanpool vouchers. Employers also have the option of subsidizing part of their employees’ commuting costs and allowing employees to pay for the remainder, up to the $130 monthly limit, with pre-tax dollars.
Qualified Bicycle Commuting Reimbursement. The 2008 Energy Act added “qualified bicycle commuting reimbursement” to the list of transportation fringe benefits. Since 2009, any employer may reimburse an employee up to $20 per month, tax free, for reasonable expenses incurred by the employee for the purchase of a bicycle and bicycle improvements. This includes repair and storage if the bicycle is regularly used for travel between the employee’s residence and place of employment.
Listed below are additional resources to help you create a Tax Benefit Program at your business/organization.
- IRS – Publication 15-B
- Market Watch: Snagging tax-saving transportation benefits
- Wikipedia: Employer transportation benefits in the United States
- Commuter Tax Benefits White Paper from the Best Workplaces for Commuters
- Transit and Vanpool Tax Fringe Benefits from the Best Workplaces for Commuters
- IRS Transportation Benefit Information
- Bicycle Commuter Tax Benefit Information from the League of American Bicyclists
- Tax Benefit Form, San Luis Obispo Superior Court Employees
- Tax Benefit Form, San Luis Obispo County Employees