Getting you to work...
while putting money back in your pocket.
Are you a business owner looking for a way to provide your employees with a unique, eco-conscious benefit while saving money on your taxes? Consider SPARTA's Commuter Choice program.
The IRS allows employers to offer employees tax-free commuter benefits up to certain limits. For Spartanburg, that means a $37.50, 31-day pass offered by an employer would be free from both payroll and federal income tax for both the employer and the employee. This great financial incentives for employees can help encourage greater ridership of public transit in Spartanburg, lowering carbon emissions by reducing the number of cars, while putting money back in the pockets of both the employees and businesses in our community.
For businesses interested in the serviced, there are several ways to provide the employee benefit.
- Employer paid: The employer directly subsidizes the cost of transit, typically by providing a transit pass or voucher to employees; the amount of the benefit is free of payroll taxes for the employer and employee, and the employee pays no federal income taxes on the benefit.
- Employee paid: Also called a pre-tax deduction, the employer allows the employee to reserve income on a pre-tax basis for transit costs. The employer saves payroll taxes on the reserved income and the employee saves payroll and federal income taxes.
- Mixed: The employer covers part of the cost of transit, and allows the employee to pay for the remainder with pre-tax income.
For more information on how the Commuter Choice program works, visit their website, CommuterChoice.com.