Commuter Benefit Plans allow employers to offer a tax break to employees with qualified transportation expenses related to their employment. This benefit reimburses employees based on the amount deducted from their paycheck and is capped at a monthly amount. The monthly amount is determined by the IRS & typically changes year to year.
The following benefits may be offered on a pre-tax basis through a commuter plan:
These include any pass, token, fare card, voucher, or similar item entitling a person to transportation (or transportation at a reduced price) if it encompasses mass transit facilities or is provided in a highway vehicle eligible for use in van pooling.
This means transportation to and from an employee‘s residence, but only if the transportation is in a “commuter highway vehicle” that seats at least six adults plus the driver. At least 80% of the vehicle‘s use should be for transporting employees between their homes and their jobs. Employees must use at least half of the seating capacity for such trips.
The Qualified Parking benefit enables the employee to pay for parking with pre-tax dollars if the parking facility is at or near the employer’s business premises. It also includes parking at or near a location from which the employee commutes to work by mass transit, van pooling, in a commuter highway vehicle, or by car pool (parking at or near the employee’s home does not qualify).
Your employees can now use their commuter benefits and pre-tax dollars to pay for eligible uberPOOL, Lyft Line, and Via rides associated with their commute. No longer will they have to be at the mercy of public transit schedules. They simply request a ride via the appropriate app, select their benefit debit card as their payment method, and start saving.
While not available everywhere, your employees can use their commuter benefits for eligible uberPOOL, Lyft Line, and Via rides- minimum of six passengers required in the following cities.
Lyft Line: Atlanta, GA; Austin, TX; Boston, MA; Chicago, IL; Denver, CO; Las Vegas, NV; Los Angeles, CA; Miami, FL; Nashville, TN; New Jersey, NJ; New York, NY; Philadelphia, PA; Portland, OR; San Diego, CA; San Francisco, CA; Seattle, WA; Silicon Valley; Washington DC
VIA: Chicago, IL; New York, NY; Washington, DC
uberPOOL: Atlanta, GA; Boston, MA; Chicago, IL; Denver, CO; Las Vegas, NV; Los Angeles, CA; Miami, FL; New York, NY; Philadelphia, PA; San Diego, CA; San Francisco, CA; Seattle, WA; State of New Jersey; Washington DC