Time to dust off that tax-free commuter benefit. It’s been getting musty under the pile of better-known HR benefits — those health care and childcare programs — for the last two decades.
Only about half of employers — and likely a lower percentage of employees — even know that the benefit exists, according to a survey released Tuesday by the TransitCenter, Inc., a nonprofit that promotes mass transit. And yet, the commuter benefit could be provide a big boost to workers struggling with high gas prices and employers who report that commuting costs are beginning to affect worker retention.
The benefit works just like those other payroll set-asides, allowing employees to pull money out of their pre-tax pay for commuting expenses. Under the IRS rules, employees offered the benefit can set aside up to $115 per month to pay for transit and vanpool commuting costs, and up to $220 for commuter parking.





