Tax Commuter Expense Reimbursement Program?
Pre-Tax Commuter Expense Reimbursement Programs give employees the ability to pay for qualified travel expenses with pre-tax dollars. This means you can offer employees the opportunity to set aside a portion of their salary, before taxes are calculated, and use that money to pay for work related parking and public transportation. The amount set aside is completely exempt from Federal income taxes and Social Security (FICA), as well as California income and SDI taxes. This generates savings to both you, as the employer, and to your employees Not only are these plans a competitive way to cope with the cost of getting employees to and from their jobs, the savings generated for the employer will often pay for the administration. That makes this a virtually FREE BENEFIT!
