|
Transit |
Vanpool |
Qualified Parking |
Qualified bicycle commuting
reimbursement |
|
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 Benefit |
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)orEmployee 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 p>Employee pays
for commute benefit with the pre-tax
income and saves on income tax or a
combination of both |
Employee reimbursed up to $20/month
for reasonable expenses related to
commuting by bicycle |
