employerresources
IRS COMMUTER BENEFITS

Commuter benefits are transit and vanpool benefits that employers can provide to employees on a tax-free basis.

How do commuter benefits work?

Requires employer involvement
Employers elect to provide benefits through:

Employer-paid program: A tax-free benefit of transit and vanpool fares
Employee pre-tax program: Employees reserve income on a pre-tax basis to pay for transit or vanpool costs
Combination of the above

The legal non-taxable limit on transit/vanpool benefits is $230 per month.

By using pre-tax dollars, employers can save up to 8% on payroll taxes and employees can save up to 40%.



For more information about how this program can work for you, contact the South I-25 Urban Corridor TMA at 303.867.5550.