Yes, the 4th of July is right around the corner, but so is one of the biggest traffic jams of the year. According to AAA, about 37.5 million people are about to hop in their cars to visit family and friends to celebrate at the communal barbecue.
And since one of the last things, you want to do on your day off is get stuck in traffic, we’re going to share an easy trick with you that not only allows you to beat the rush, but to save money while you’re doing it.
Commuter benefits can shave up to $1,332 off your tax bill
At Edenred, we help provide your employees with stellar benefits. One of those benefits is set up to not only help you get to and from work, but to save you money on taxes.
With the click of a button, your employer can allow you to set aside up to $300 from your paycheck every month– pre-tax –to be spent on any form of public transportation available in your area.
When you choose to opt into this benefit, it means you won’t be taxed on that up to $300 a month you set aside each month. As a result, and depending on your income bracket, you could save anywhere from $360 to $1,332 on your taxes. That’s cash that stays in your pocket!
If you’re wondering why you can’t just opt to do this yourself, it’s because the IRS says your employer has to “allow” you. Why? Because when you save, they save. In fact, for every employee that opts in, they save about $40 per person. That means for a company of 50, they could save around $24,000. For a company of 100, the savings could be $48,000. No one loses when it comes to commuter benefits.
But what does the IRS define as public transportation?
The IRS says you can use the subway, train, bus, light rail, trolley, streetcar, cable car, vanpool, ferry, water taxi, monorail, tramway, and even paratransit services for senior citizens and people with disabilities when you set aside up to $300 from your paycheck, pre-tax, to take public transportation.
Here’s the secret about your commuter benefit perk
You don’t have to use it just to get to and from work. If you try to use your monthly public transportation pass to get groceries or visit a family member, your trip won’t be denied.
So, what’s to keep you from using your pass to beat the Fourth of July traffic jam? Absolutely nothing.
And that’s just another reason this perk is so great. It was constructed to make it easier for us to get to and from work, to promote the use of public transportation, and most importantly to help save everyone money. But you can use it to ride public transportation any time.
Commuter benefits are the #1 way to beat the traffic and save your hard earned cash
Here at Edenred, we streamline the process of offering benefits like commuter benefits, making it straightforward and stress-free. We take the administrative burden off your employer by managing everything for them. And because we believe simplicity is of the utmost importance, we also make using your benefits as effortless as brewing your morning coffee.
If you’d like to start saving money on public transportation, schedule a meeting with us so we can discuss all your options with us.