The average American driver may spend more than 450 hours each year - equal to nearly 11 weeks of work - behind the wheel.
The result: A mounting level of frustration, stress, anger and hostility that causes illness, reduces productivity in the workplace, and degrades the quality of life at home.
In addition to improving the environment, encouraging your employees to use transit helps them — and you in many ways to:
- Reduce stress
- Reduce accidents
- Save money — on fuel, maintenance, insurance, parking and taxes!
Offering your employees a transit benefit program allows them to pay for their transit expenses with pre-tax dollars, avoiding Federal, NYS, NYC and FICA payroll taxes on the amount they deduct for transit, up to $270 per month. With pre-tax transit benefits, employees can save up to 40% of their transit expenses – up to $1200 per year – while also reducing employer FICA payroll taxes.
Sample employee savings with pre-tax transit benefits
|Monthly commuter expenses||$270|
|Monthly costs without pre-tax deduction||$270|
|Monthly costs with pre-tax deduction||$162|
|Employees could net annual savings||$1296*|
|* Annual savings based on 2020 Federal, NYS, NYC and FICA tax rates for a single taxpayer with standard deductions. Actual savings may vary. Consult your tax advisor.|
Good for you. Good for the environment.
Since the TRANSIT SOLUTIONS program began, the following employers on Long Island are just a few of the companies that have implemented the pre-tax commuter benefit program.