Commuter Choice Initiative
The Commuter Choice tax benefit creates
big savings for commuters and employers.
Employers can increase their benefits
package and reduce their payroll taxes by offering
Commuter Choice benefits, which can be paid for by
the employer, by the employee (through a pre-tax
salary deduction), or by a combination of both employer
and the employee. These benefits are offered through
Section 132 of the Federal tax code.
Employers can create a Commuter Choice
program to incorporate transit/vanpool benefits,
qualified parking benefits, and/or parking cash out
benefits. The program can include all or any of these
benefits.
Employers have the flexibility to choose
what to offer, and to choose who is eligible to receive
the benefits.
Click here to find out more about the Commuter
Choice benefit.
New in 2009 Tax Free Benefits
added for Bike Commuters in 2009
The Emergency
Economic Stabilization Act of 2008 :
H.R. 1424: (bailout)
bill signed into law by President Bush
on October 3, 2008 includes expanding
qualified transportation fringe benefits
(Section 132(f) ) to allow up to $20.00
per month for bicycle commuters. Bicycle
benefits will take effect in January
of 2009.
This benefit means that employers may provide
employees with up to $20 in tax-free bicycle
benefits per month up to $240 per calendar
year for reasonable expenses incurred by
the employee during the calendar year for
the purchase of a bicycle and bicycle improvements,
repair, and storage if the bicycle is regularly
used by the employee to travel between
the employee's residence and place of employment. FRINGE
BENEFIT FOR BICYCLE COMMUTERS. |
