Tax-free Transit Benefits Telework Guaranteed Ride Home Carpooling Vanpooling Alternative Work Schedules Car Sharing Parking Biking and Walking Air Quality Action Days Tax-free Transit Benefits What are tax-free transit benefits? What are the benefits of tax-free transit benefits? How ATP helps How can I encourage employee participation? Online resources What are tax-free transit benefits? As we hear every day in the media, transportation is a growing problem in the Washington region. Did you know that it is also a major consideration for potential employees when deciding whether to accept job offers? You can make that decision easier by adding a tax-free transit benefit to your benefits package. Tax-free transit benefits allow employers to provide employees up to $115 per month ($1,380 per year) to cover the cost of commuting on Metrorail, VRE, MARC, local and commuter buses, and vanpools. And the best part is, unlike ordinary wage payments, employers do not have to pay their share of federal payroll taxes on tax-free transit benefits, plus, the cost of providing tax-free transit benefits can be deducted as a normal business expense. Tax-free transit benefits can be implemented either through a CommuterDirect.com® Corporate Services Account or through WMATA.  There are three options for offering tax-free transit benefits to your employees: Employer contribution Pre-tax deduction from the employee's paycheck Combination of pre-tax deduction and direct benefit Of course, employer contribution is the most favorable to your employees.  If that's not an option for your company, a pre-tax payroll deduction is still beneficial to both you and your employees. You will actually save approximately $164 a year in payroll taxes per participating employee, and your employees will save 15% to 42% of their monthly commuting costs, depending upon their individual tax brackets. NOTE: There is an additional transit benefit employers can provide their employees, called a cash transit benefit. Instead of providing a tax-free transit benefit through the Metrochek system or CommuterDirect.com Corporate Services, the employer simply gives the employee cash. This is not a tax-free transit benefit (the cash is considered taxable income), but can be combined with tax-free transit benefits. Return to top What are the benefits of tax-free transit benefits? Offering $115 in tax-free transit benefits each month lets your employees know that you want them to have easier, cheaper, and less stressful commutes to work. It also helps make your business more competitive in recruiting and retaining employees. "We're doing this because there clearly is a need, and it is in the best interest of our company." "The cost of Metrochek is insignificant compared to the benefits." "It expands our labor pool. There are many employees who could not work here without it. I observe employees who take rail or HOV as being much less stressed. They put in a longer, more productive day." -PricewaterhouseCoopers Return to top How ATP helps: ATP makes it easy and convenient for you to establish and administer a program that meets the IRS requirements for tax-free transportation benefits. Ways in which ATP can help include: Providing information on tax-free transit benefits and answering any questions Explaining implementation choices Helping you choose the best program option for your needs Guiding you step-by-step through the implementation process, which includes: Establishing an account Open enrollment Promotion of the program Following-up to ensure success Keeping you up-to-date on any changes in the tax law Providing samples of: The IRS tax code Promotional e-mails Enrollment forms Transit information Open enrollment events to employees Sponsoring a workshop or seminar to explain tax-free transit benefits Return to top How can I encourage employee participation? There are numerous ways you can get the word out and encourage employee participation in a tax-free transit benefit program, including: Sending out e-mail notifications and reminders Displaying posters and flyers in high-traffic areas of your office Including information packets with paychecks Including an article in your company newsletter Providing information on your company's intranet Including information in your new hire packets Return to top Online resources: Local vanpool and commuter bus services that accept Metrochek Local Commuter Stores to exchange Metrochecks Return to top Account Holders Login: Username:   Password:            Print Search      Arlington County VA Home      Privacy Policy      Title VI      ADA      ATP Home