Make Your Commute Work For You with Commuter and Parking Benefits
There’s no better way to ride in style than saving money on your work commute. Whether taking a train or a bus—or even jumping into a rideshare program offered through Uber and Lyft—employees can bank some serious savings through ConnectYourCare’s pre-tax commuter and parking benefits program.
That’s right. Under Section 132(f) of the U.S federal tax code, employers can extend to their employees tax-free fringe benefits for qualified transportation and parking expenses. Employers, too, can save up to 7.65% on payroll taxes. Talk about a win-win!
Commuter and Parking Benefits Video Transcript
Think about your daily commute to work…whether you’re in your car trying to find a parking spot, on a train, on the bus, or using a ride-share with colleagues…Did you know that you could be making money? That would definitely make it more bearable to sit by this guy.
If your company offers commuter benefits, you can make money on your everyday commute. It’s easy to get started, and you can activate the benefit at any time during the year. The IRS sets a monthly limit for both parking expenses and transit expenses. Think of these as two separate bags of money…A bag for transit and a bag for parking.
Whatever you spend on parking or on transit can actually be deducted from your paycheck. The good news is that you never pay taxes on those funds. If you maximize both the parking and transit amounts each month, you could save up to two thousand dollars a year, depending on your tax situation.
Imagine what you could do with two thousand dollars: Take that trip to the islands…Save up for a bigger place…Buy five hundred overpriced coffee drinks…Start a goat farm in Patagonia…well…Or you know, just do those other things.