What are transit benefits?

Transit benefits, also known as transportation benefits or commuter benefits are a very attractive and valuable component of a company's benefits package. When employees participate in this voluntary program, they use tax-free dollars to pay for their eligible transportation expenses.

Types of plans

Transportation: Transportation plans pay for public transportation with pre-tax dollars. This plan continues from one year to the next and elections can be changed anytime.

Parking: Parking plans pay for the parking an employee may use while they are working with pre-tax dollars. This plan continues from one year to the next and elections can be changed at anytime. 

Did you know?

Offering a qualified transit program can save your employees up to 40% off the cost of their commute to work? Major cities such as New York City, San Francisco and District of Columbia have passed transit benefit laws/ordinances that require employers with anywhere from 20-50 employees or more to offer a transit benefit plan to employees. These laws are environmentally friendly and puts savings in the hands of employers and their employees. Currently an estimated 2.7 million employees nationwide receive pre-tax commuter benefits.

2020 Limits

• In 2020, the IRS mandated limit for pre-tax contributions to commuter benefits accounts increased:
  
  To $270 per month in transit expenses
  To $270 per month for parking expenses

If you need help administering your company commuter benefits program, contact benefitexpress today!