Commuter benefits, also known as transit benefits, are a type of employee benefit offered by some employers to help their employees pay for their commuting expenses. Commuter benefits can take different forms, but they generally allow employees to set aside pre-tax dollars from their paychecks to pay for eligible commuting expenses.
The most common types of commuter benefits include:
- Transit passes: Employers can provide their employees with pre-tax dollars to pay for public transportation passes, such as bus or train fares.
- Parking benefits: Employers can provide their employees with pre-tax dollars to pay for parking fees at or near the workplace.
- Bicycle commuting benefits: Employers can provide their employees with pre-tax dollars to cover expenses related to bicycle commuting, such as purchasing a bicycle or bike repair costs.
- Ride-sharing benefits: Employers can provide their employees with pre-tax dollars to pay for ride-sharing services, such as Uber or Lyft.
Commuter benefits can save employees money on their commuting expenses by reducing their taxable income. They can also provide a financial incentive for employees to use environmentally friendly transportation options and reduce traffic congestion. Employers can also benefit by offering commuter benefits, as they can reduce payroll taxes and improve employee retention and satisfaction.