Thursday, November 20, 2008

Tax-Free Transit!

Companies providing transit incentives is nothing new (well, in concept, anyway)...what is new is that more and more are able to provide pre-tax transit spending accounts (kind of like your health care or dependent care spending account).

San Francisco now requires all businesses with more than 20 people to provide transit benefit programs. Employees are permitted to put aside up to $115 per month ($1380 per year) in a tax-free transit benefit account. Individuals can save between $300 and $500 annually (dependent upon tax bracket); companies can save over $100 per employee per year in payroll taxes by directly contributing to the account.

Check out the article: Compute the commute to save


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