What Are Commuter Benefits Exactly?
The CliffsNotes Version: Savings all around. Bigger paychecks, reduced payroll.
The Unabridged Version: In 1984, the IRS decided to give hard-working citizens, like you and your employees, tax-free benefits for commuting to work via public transportation since most employers offered free parking. Today’s benefits, IRS Section 132(f), have been expanded to include parking, vanpools and even biking as parking costs in most cities are at a premium, and transit ridership fees are on the rise.
Where do they come from?
IRS Section 132(f) makes it possible for tax-paying commuters to get more out of their paychecks by reducing commuting costs up to 40% and for employers to cut down their payroll taxes on average by 7.65%.
How are these so-called benefits delivered?
Based on the commuter benefits program you select, employees have the choice to redeem vouchers, use our Commuter Check Prepaid MasterCard®*, electronically reload Smart Cards, directly receive the transit and bus passes they already use, have us make payments directly to their provider of choice or receive cash reimbursement.
See Cardholder Agreement
Savings, you say?
Savings indeed! By using commuter benefits, commuters can save up to 40% on commuting costs, including transit, parking and biking costs. And, companies can save 7.65% on payroll taxes.
That sounds awesome! How do I sign up?
You can sign up through your employer. Your employer doesn’t offer commuter benefits? We can fix that.
*The Commuter Check Prepaid MasterCard is issued by The Bancorp Bank pursuant to license by MasterCard International Incorporated. The Bancorp Bank; Member FDIC. MasterCard is a registered trademark of MasterCard International Incorporated.