Commuter Choice Programs
IRS provides benefits for using sustainable transportation options. Transportation tax benefits are available both to commuters and to their employers. Commuters can receive tax-free commute benefits up to a qualified amount and employers can increase their benefit packages while reducing their payroll taxes. Currently, there are four types of qualified transportation benefits available for:
· A transit pass - up to $230 per month.
· Qualified parking - up to $230 per month.
· Qualified bicycle commuting reimbursement - up to $20 per month.
Qualified transportation benefits can be provided directly by employers or through a bona fide reimbursement arrangement. However, cash reimbursements for transit passes qualify only if a voucher or a similar item that the employee can exchange only for a transit pass is not readily available for direct distribution by employer. A voucher is readily available for direct distribution only if an employee can obtain it from a voucher provider that does not impose fare media charges or other restrictions that effectively prevent the employer from obtaining vouchers.
For more information, email us at info@commutealternatives.info.
