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$Commute-n-Save$
(Pr e
-Tax Federal Transportation Fringe Benefits)
The Smart
Commute Program is sponsored by
The New York State Department Of Transportation
You've
seen it advertised on buses, trains; found inserts in your local paper
telling you that you can use pre-tax dollars to pay for commuting
costs.
 It’s
Westchester’s
name for the Federal Commuter Choice Program and it explains how
employers
can give a new federal pre-tax benefit to those employees currently
using public transit
buses, trains, ferries and vanpools and encourage other employees to
take advantage
of this benefit that is an attractive alternative to driving to work
alone – a real choice. Recent
changes to the Qualified Transportation Fringe Benefits in the Internal
Revenue Code make it easier for companies to offer public transportation
benefits to their employees.
An employee
may take up to $110 per month in actual eligible transportation costs
and up to $215 per month for qualified parking to
obtain a pre-tax
savings. Participating
employers lower their FICA and Federal income tax costs. In many areas,
state and city income taxes are reduced as well. The maximum pre-tax
benefit may increase each year based on increases in the cost of living.
U.S. employers spend $36 billion
annually on employee parking. It is the most common commute benefit
offered to employees and the most common fringe benefit of any kind.
Near ly all those eligible for free
parking drive to work alone and that is the problem. Driving to work alone contributes more
air pollution, wastes energy and causes traffic congestion. These are some of the
hidden costs that do not figure into the "free parking" equation. This
country’s tremendous investment in public transportation is not being
fully used and that is a luxury that America cannot afford. To get more
cars off the roads and commuters into efficient travel arrangements, the
cost of commuting on public transportation is a "pre-tax"
employment benefit.
Call (914)
813-7741 for details or contact us at:
mbb4@westchestergov.com
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