Increase Your Take-home Pay While You Save Up to 40% on Work-related Transit and Parking Expenses
Calculate Your Commuter Benefit Savings
A Commuter Benefit Plan is a benefit provided by your employer that allows you to set aside pre-tax dollars* each month to pay for qualified, work-related transit and parking expenses.
- No more waiting in line! Transit and parking products are ordered online and mailed to the participant’s home address
- Participation is a monthly, rather than annual choice
- No use-it-or-lose-it rule for active employees - unused account balances carry forward to next coverage period
- Short order cycle – participants enrolled by the 10th of each month (NYC area the 4th) will receive their transit and parking pass/voucher in time for the following month
- Regular monthly e-mails are sent to you to keep you informed and up-to-date about your transit and/or parking selections and account balances.
By spending pre-tax dollars, you effectively reduce the cost of your commute and you'll take home more money.
Eligible Commuter Expenses
- TRANSIT EXPENSES: Subway, Train, Bus, Van Pool, Street Car, Ferry
- PARKING EXPENSES: Parking at or near work, Park & Ride
- View eligible commuter expenses
IRS Maximum Allowable Employee Contribution
- Transit: Effective March 1, 2009, transit limit is $230 per month
- Parking: 2009 parking limit is $230 per month
| Annual Commuter Benefit Plan savings comparison – example** | With Commuter Plan |
Without Commuter Plan |
| Annual Taxable Income | $35,000 | $35,000 |
| Qualified Commuting Expenses | ||
| Transit ($100/Month) | $1,200 | $0 |
| Parking ($200/Month) | $2,400 | $0 |
| Total Pre-tax Contributions | ($3,600) | $0 |
| Taxable Income After Commuter Contributions | $31.400 | $35,000 |
| Federal & State Income & Social Security Taxes (40%) | ($12, 560) | ($14,000) |
| After-Tax Income | $18,840 | $21,000 |
| After-Tax Dollar Spent on Qualified Commuting Expenses | $0 | $3,600 |
| Total Take-home Pay | $18,840 | $1,440 |
| Increased Take-home Pay | $1,440 | $0 |
* This example is intended to demonstrate typical tax savings based on a total income tax rate of 40%. Actual savings is based on individual tax situations.
** Transit & parking contributions are deducted before federal and most state taxes. Check with your tax advisor as your tax rates may vary.
Calculate Your Commuter Benefit Savings
** Transit & parking contributions are deducted before federal and most state taxes. Check with your tax advisor as your tax rates may vary.
Calculate Your Commuter Benefit Savings