How Does the Bicycle Commuter Tax Benefit Work?
Option 1: Employee-Paid Pre-tax Benefit Option Many companies choose this option. By establishing a pre-tax deduction program, employers permit their employees to exchange part of their gross income for an employer-provided voucher. The amount of the pre-tax deduction is no longer treated or reported as taxable salary for the employee or employer. The company does not have to write a plan document or obtain IRS approval, so there is little paperwork. There are no irrevocable elections or forms. A pre-tax program can be started any time of the year, or enrollment can be limited to certain times of the year. The League of American Bicyclists and the SFBC is working with Commuter Benefit Providers to add the bicycle benefit to their existing commuter portfolio. Accor Services is the only Commuter Benefit Provider the SFBC is aware of that currently offers a Bicycling voucher for all purchases allowed by the federal program. This voucher can be used at any bicycle shop. Employers purchase
