The Transportation Equity Act of 1998 amended the federal tax code to create financial incentives related to commuter benefits for employers and employees. Here are several universal programs within Commuter Choice that are available for both employees and employers. The following are Commuter Choice programs that provide financial incentives for employers:
Employers can pay for their employees to commute by transit or vanpool. Money spent on transit benefits is exempt from payroll taxes up to a limit of $115/month. Additional state tax credits are available in Maryland.
Employers can share the cost of transit or vanpool costs with employees and everyone can receive valuable tax savings.
Employers can offer their employees the option to “cash out” of their existing parking space and utilize these monies towards their salary, tax-free transportation or vanpooling costs.
Includes commuter highway vehicles driven by employees carrying 7-15 commuters to and from work.
Check and see if your workplace offers these types of programs!
For more information visit the Maryland Department of Transportation Commuter Choice web site.
If you have any questions, please contact Tim Shepherd at 410-537-3270 or e-mail at firstname.lastname@example.org so that he may direct your inquiry.
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