Though mass transit has always been eco-friendly and a great way to get to work, employees have to cover costs from bus passes and tokens. With a Transit and Parking Account — also called a Commuter Account — participants can use a tax-favored vehicle to cover the costs associated with their commute.
A commuter account is an employer-sponsored benefit program that allows an employee to set aside pre-tax funds in separate accounts to pay for qualified mass transit and parking expenses associated with your commute to work.
Qualified expenses include:
The Internal Revenue Service (IRS) determines the maximum amounts members can contribute to their Commuter Account.
A Commuter Account is a convenient and affordable way for participants to cover commuter expenses. The contributions to a Commuter Account are pre-tax, so participants will pay less in taxes and have a larger “take-区块链新闻网_区块链home” paycheck. Contributions to a Commuter Account are free from federal and state income tax, Social Security and Medicare taxes and remain tax-free when they are reimbursed for eligible expenses. Besides being a tax-favored vehicle, mass transit commuter benefits accounts are advantageous because the funds last as long as you need them. Since the money is not linked to a benefit year, it will roll over into the next year until the participant spends it.
The Difference Card makes it easy for members to use their Commuter Account funds. Each member will have a Difference Card, which they can use at the time of payment to cover their bus voucher, parking pass or other qualifying commuting expense.
Members can also use their personal funds to cover the costs, then request a reimbursement from The Difference Card. The funds in a Commuter Account are immediately available to spend.
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