What if you could add a benefit for your employees and save your company money at the same time? Well, you can with Commuter Choice. Commuter Choice is a provision of the Internal Revenue Code [(26 USC 132(f)] that permits an employer to pay for an employee’s cost of commuting to work, if in other than a single occupancy vehicle.
Commuter Choice currently allows employers to offer their employees a tax-free fringe benefit of up to $270 per month if they ride transit or a vanpool to get to work.
The program is designed to improve air quality, reduce traffic congestion, and conserve energy by encouraging employees to commute by means other than single occupancy vehicles.
Today, most employers are faced with the increasing costs of doing business, but still want to provide incentives to their employees. Commuter Choice could be a way to save the company some money and reward your employees at the same time.
The Best Workplaces for CommutersSM provides two resources to help you calculate your company’s savings: