Travel Information Bulletin
April 2002

The Pre-Tax Commuter Choice Benefit
Are you offering your employees a great fringe benefit that not only may save them up to 40 percent of their transit and qualified parking costs, but also makes you a winner?  Many companies in Westchester such as Nordstrom’s, Consumers Union and Michael Anthony Jewelers have recognized the value of offering the Federal Transportation Commuter Choice Benefit known in Westchester as $Commute-n-Save$.  If you haven’t, we are here to help you understand it, look at all your options and assist you with implementing this benefit.

This pre-tax benefit allows your employees to use pre-tax dollars to pay for their transit and parking costs that they spend to get to work.  Currently the IRS allows employees up to $100 per month for the transit portion of their commute and up to $185 per month for qualified parking.  An example of qualified parking is parking at a "park-and-ride" location  near a train station.

How does your company win?  You are able to save on related payroll taxes as well as use this benefit to suit your purposes rather than be restricted to other pre-tax benefit requirements.

The mission of Westchester’s SMART COMMUTE Program is to promote commute options that reduce single occupancy vehicles on the road in order to reduce traffic congestion and improve the air quality in our region.  The program works with Westchester corporations and commercial property developers to promote commute alternatives such as transit or qualified vanpools. Your employee can use this federal transportation fringe benefit to pay for those costs.

For more information about this and other commute-related issues, please call the SMART COMMUTE Program at (914) 995-4444.

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