There is increased transit savings in store for 2002! Due to changes in federal law taking effect January 1, 2002, commuters can now save up to $480 annually through Commuter Check. Employers save more on payroll taxes as well—up to $120 per employee.
Tax-free Monthly Benefit Increases From $65 to $100
Published: January, 2002
There is increased transit savings in store for 2002! Due to changes in federal law taking effect January 1, 2002, commuters can now save up to $480 annually through Commuter Check. Employers save more on payroll taxes as well—up to $120 per employee.
Beginning January 1, the maximum benefit for tax-free transit rises from $65 to $100 per month. Commuter Check is a "Qualified Transportation Fringe Benefit" under IRS Section 132(f). The law now allows employers to give employees up to $780 per year in Commuter Checks as a pre-tax payroll deduction or a tax-free employee benefit. The increase to $100 allows employers to give employees up to $1,200 per year as a tax-free benefit and increases their annual per employee savings to about $120.
"After informing our employees about the new cap, people in the office were very excited, frankly. We think it’s wonderful and only wished the cap was raised sooner," said Ruth Soderback of Trinity Capital Corporation in San Francisco. "Commuter Checks now offer even larger savings to our employees, and don’t pay taxes on it. The news is especially exciting for those who commute from the East Bay and the Peninsula. It’s a huge savings for them. Commuter Check allows us to help reduce emissions and assists in saving our environment."
Commuter Check vouchers are vouchers redeemed for transit passes, tickets, and tokens and are accepted by all transit operators throughout the Bay Area, and vanpools. About 80,000 commuters currently receive Commuter Checks at more than 3,200 Bay Area employers, who have enrolled since 1991.
For more information about Commuter Check call 800-559-7909, or visit www.commutercheck.com.
