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Employer/Commuter Tax Benefits

"Employer/Commuter Tax Benefits" are like money in the bank. Employers save on payroll related taxes. Employees save on federal income taxes.

In 1998, the Transportation Equity Act for the 21st Century (TEA-21), a new federal transportation bill was passed that provides employers and commuters new "tools" for saving money while reducing congestion and decreasing air pollution.

You should, however, always consult with your company's accountant and/or tax attorney to ensure compliance with tax codes and filing requirements, especially as they relate to your particular industry and jurisdiction (state).

Overview:

As of 2006, employers may offer expanded tax-favored benefits to their employees. Section 132(f) of the federal tax code enables employers to ease employee's commuting costs in several ways.

• Employer-financed employers may underwrite their employees transit or vanpool commuting costs, up to $105 and offset qualified parking expenses up to $205 per employee, per month.
  
  
  • Employer perspective costs are a deductible business expense.
    
    
  • Employee perspective transit, vanpool or parking benefits are free of all payroll and income taxes.
    
    
• Employee-financed employers may allow employees to set aside pre-tax dollars to purchase transit passes, pay vanpool fares, and to cover qualified parking costs. Monthly limits are $105 per employee, per month for transit or vanpools expenses, and $205 for parking.
  
  
  • Employer perspective employers save payroll taxes on the funds their employees set aside pre-tax, typically 7.65%.
    
    
  • Employee perspective employees save payroll and federal income taxes on the set-aside funds. For employees in the 25% tax bracket, for example, that savings represents over three month's worth of commuting costs.
    
    
• Combined employers may choose to underwrite a portion of employees' transit, vanpool, or parking costs and permit employees to set aside pre-tax funds for remaining costs, up to the monthly limits.
  
  
  • Employer perspective the portion of costs used to underwrite commuting costs are a deductible business expense. Employers save payroll taxes (7.65%) on the portion their employees set-aside on a pre-tax basis.
    
    
  • Employee perspective the employer-financed portion of transit, vanpool, or parking costs are tax-free. Employees save payroll and income taxes on the portion set-aside on a pre-tax basis.

(Courtesy of MassRIDES and URS Corporation)

Minimum Requirements of the CTR Law

Spokane County CTR Ordinance
(official copies may be obtained from the Auditor)

Definition of Good Faith Effort

Frequently asked questions about CTR

More info on CTR Statewide


Tax Benefits Chart


Tax Benefits FAQ

Current News

January Weekly Winners
01/27/2012
Remember, during the month of January, just by participating once a week and completing your commute calendar you will go into a weekly drawing. Check here to see those who've won!

December Winners
01/17/2012
Congratulations to Linda Freeman, Premera. She was the grand prize winner of a Kindle. Check here to see who the other 10 lucky winners of a $25 Safeway Gift Card are.

"Recruit a Friend" Qualified Participants
01/17/2012
Congratulations to all the qualified participants in the "Recruit a Friend" promotion. We had 50 new participants commit to using a commute alternative at least 25 times from Oct-Dec. Congratulations to all!

4th Qtr All Star Coach
12/22/2011
Conni Ellern, ETC, WA State ESD Telecenter, click here to read her inspirational story.

December Most Valuable Commuter
12/21/2011
Jenny Stettler, Spokane County, click here to read her inspirational story.

November Most Valuable Commuter
12/20/2011
Les Kienbaum, WA State Department of Transportation, click here to read his inspirational story.

October Most Valuable Commuter
12/19/2011
Tamara Norlander, WA State ESD Telecenter, click her to read her inspiration story.

November Prize Winners
12/13/2011
Congratulations to Chanda Bhuta, WA State DSHS-DCS, she was the Grand Prize winner of the Kindle for her participation in November. Check here to see who the other 10 lucky winners were.

Commute Smart Awards celebrates 20 years!
10/12/2011
Northwest Orthopaedic Specialists, Catherine Bowden from Avista and Ron Kusler from Spokane County were among the Governor's Commute Smart Award winners.

STA's Trip Planner
09/25/2011
Plan your commute to work with STA's new Trip Planner. It's easy and convenient!

Take advantage of STA's Employer Bus Pass Program!
08/10/2011

Current Vanpool List
07/18/2011
Check here for the latest vanpool list.

The Transportation Vision Project
07/07/2010
Click here for more details.

Previous Way to Go Winners
07/10/2007