Frequently Asked Questions
How many employees do I need to sign up for commuter benefits?
There is no minimum. Companies can sign up for commuter benefits with just one employee.
How do commuter benefits save employees money?
Employers save an average of 7.65% on payroll taxes annually. If 10 employees participate over 12 months, your company could save up to $5,000 annually.
When an employee enrolls in our commuter benefits program, they can pay for their commuting costs with pre-tax money, up to the current IRS tax limit of $280/month, which can save them an average of $700 on taxes at the end of the year.
How do commuter benefits save employees time?
Employees enroll in our program, then specify the products they need on a monthly basis. We take care of the rest: prior to the start of the next benefit month, we mail physical passes, reload accounts, and even pay parking providers. We also offer an IRS-compliant reloadable debit card—accepted by transit and parking producers—for employees who would like to make their purchases in-person.
What are the different types of commuting expenses covered?
- Bus, ferry, train, trolley tickets and passes
- Parking expenses: meters, garages and lots
- Vanpool fees (including uberPOOL and Lyft Shared)
What expenses aren’t covered?
- Business trip costs
- Airport parking fees
- Parking fees at your home
What are the current monthly tax-free allowable limits?
- Transit and eligible vanpooling: $280
- Qualified commuter parking: $280
- Combined parking and transit benefits: $560
What’s the difference between a subsidy and a pre-tax deduction?
A subsidy is an employer paid benefit, whereas, a pre-tax deduction is an employee paid payroll deduction. Commuter benefits can be offered as either a subsidy, pretax payroll deduction or a combination of both. Offering the benefit as a subsidy is more cost effective when considering giving an employee the equivalent raise in salary due to the tax advantages. For example, a parking subsidy of $250 is roughly equivalent to a $406 pay raise, which would be taxable income. A subsidy saves the employer on payroll taxes and the employee on having to pay additional taxes on a higher income.
How do vanpools work?
Employees that participate in a qualified vanpool can use commuter benefits to contribute towards associated costs. In order for a vanpool to be qualified,80% of the mileage must be for the transport of employees to and from the place of work; and seating capacity must be for 6 employees plus the driver, in which at least half of the seats are used. The van can be operated by the employer, employee or a third party.
Can my employees get their benefits automatically each month?
Indeed! Employees can sign into their respective accounts and set up automatic reorder.
Do I need to keep detailed tax records?
No complex record keeping is required. However, like any company expenditure, copies of order forms and canceled checks should be retained. But, no special IRS reporting, such as W-2 or 1099 statements, is required.
How long would it take to set up my company’s own commuter benefits program?
Setup is easy. We’ll ask for some general information about your company as part of a standard Know Your Business check, and your account can be fully set up within one day.