What are Pre-Tax Commuter Benefits?
Pre-Tax Commuter Benefits can help your employees control their transit expenses while saving money. If your employees commute to work via a bus, light rail, streetcar, vanpool, trolley, subway, ferry or bicycle, you may offer Pre-Tax Commuter Benefits.
Here's how it works: Employees set aside money in their account before paying taxes on it.
Types of Pre-Tax Commuter Benefits Available:
Qualified Transit includes mass transit, including passes, tokens, fare cards or similar items entitling your employees to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail or ferry.
Qualified Transit also includes van-pooling fees in a commuter highway vehicle with a seating capacity of at least six (6) adults, excluding the driver.
Qualified Parking includes parking fees at/near your place of work or at/near a location from which your employees commute to work by car pool, commuter highway vehicle or mass transit.
For more information on qualified expenses, visit our Frequently Asked Questions.
Increase Your Employee's Take-Home Pay
Paying fewer taxes means you keep more of the money you make. In the example below, Jane estimates she will spend $4,380 on commuter expenses for herself during one year. Here's how she can save with a Commuter Benefit account:
Maximum Elections in 2017
Up to $255 per month for Qualified Transit Expenses
Up to $255 per month for Qualified Parking Expenses
Qualified Transit and Qualified Parking expenses may be combined.
How Does it Work?
Participating in a Surency AdvantagePlus Pre-Tax Commuter Benefit plan is easy.
- Once your employees have enrolled and set their annual election amount, that amount will be automatically deducted from paychecks in equal increments throughout the year before paying federal, state and FICA taxes on the designated amount.
- When an employee is ready to use the money in his/her Commuter Benefit account for a qualified transit expense, they just swipe their Surency AdvantagePlus Benefits Card when purchasing fair cards or parking.
- To avoid losing any money, employees must file claims within 180 days of incurring the expense. As the benefits administrator, the employer determines if funds roll over at the end of each month.
We understand your employees may be hesitant to set aside funds pre-tax to use at a later date for approved expenses. We've mapped out every aspect of the consumer experience down to the smallest detail to ensure your employees understand the benefit - guaranteeing a positive experience for both employees and employer.
Want to Learn More?
Contact our Sales and Marketing team at 316.264.8413 or email firstname.lastname@example.org.
The savings amounts in the example above are provided by Surency for illustrative purposes only. You may save more or less based on your own tax situation. Some states do not recognize these tax exclusions for this program. No part of this website is tax, financial or legal advice. You should consult your own legal and tax advisers regarding your personal situation and whether this is the right program for you.