How your employees get to and from work and how they pay for it can play a major factor in their overall productivity and morale. If you’re looking for convenient commuter benefits, also known as qualified transportation benefits, to offer your employees, P&A has you covered. We offer two types of plans:
- Parking plan — allows employees to set aside pre-tax dollars to pay for work related parking expenses.
- Transit plan —allows employees to use pre-tax dollars to pay for their work related public transit expenses, such as subways, buses, and commuter rail.
Participating in our commuter benefits plan will enable employees to avoid taxes on the money they use to pay for work-related mass transit and parking. Employees may make an election to reduce their taxable pay by the amount they expect to pay for parking. The amounts employees elect are withheld over time from their paychecks. Payroll withholdings are credited to an account in their name that is used to pay the cost of their eligible expenses. Since the amounts withheld from employees’ pay are not included in their W-2 income for federal or state income tax purposes or Social Security tax purposes, and since there is no tax on the Plan benefits you receive, the cost of their mass transit and parking becomes tax-free.
To learn more about commuter benefits for your company, request a proposal to discuss your needs.
*For New Jersey taxpayers, the New Jersey state income tax will apply to money withheld from pay for any benefits that an employee elects.