Transit

Vanpool

Qualified Parking

Qualified Bicycling

Incentive Levels

Up to $230/month for transit expenses

Up to $230/month for vanpool expenses

Up to $230/month for parking at or near an employer’s worksite, or at a facility from which employee commutes via transit, vanpool, or carpool

Up to $20 per qualified bicycle commuting month. This exclusion for qualified bicycle commuting reimbursement includes any employer reimbursement during the 15-month period beginning with the first day of the calendar year for reasonable expenses incurred by the employee during the calendar year.

Employer Tax Benefits

Employers give their employees up to $230/month to commute via transit; gets a tax deduction and saves over providing same value in gross income

Or

Employers allow employees to use pre-tax income to pay for transit and employers save on payroll tax (at least 7.65% savings)

Or

A combination of both up to statutory limits

Employers give their employees up to $230/month to commute via vanpool; gets a tax deduction and saves over providing same value in gross income

Or

Employers allow employees to use pre-tax income to pay for vanpooling and employers save on payroll tax (at least 7.65% savings)

Or

A combination of both up to statutory limits

Employers give their employees up to $230/month for qualified parking; gets a tax deduction and saves over providing same value in gross income

Or

Employers allow employees to use pre-tax income to pay for qualified parking and employers save on payroll tax (at least 7.65% savings)

Or

A combination of both up to statutory limits

Employers reimburse their employees up to $20/month for qualified bicycle commuting; gets a tax deduction and saves over providing same value in gross income

 According to the IRS, "Generally, you can exclude qualified transportation fringe benefits from an employee's wages even if you provide them in place of pay. However, qualified bicycle commuting reimbursements do not qualify for this exclusion."

Employee Tax Benefit

Employee receives up to $230/month tax free (not on their W-2 form)

Or

Employee pays for commute benefit with the pre-tax income and saves on income tax

Or

A combination of both

Employee receives up to $230/month tax free (not on their W-2 form)

Or

Employee pays for commute benefit with the pre-tax income and saves on income tax

Or

A combination of both

Employee receives up to $230/month tax free (not on their W-2 form) for qualified parking

Or

Employee pays for commute benefit with the pre-tax income and saves on income tax

Or

A combination of both