Metro’s Commuter Advantage Program – Advantageous for All
The Transportation Equity Act is a provision of the Internal Revenue Code that allows favorable tax treatment for employers that help their employees ride Metro. Under Section 132(f) of the Internal Revenue Code, an employer can deduct up to $245 per month per employee when they pay for their employees’ commute to and from work on Metro by offering the cost of a Metro transit pass. The employer can deduct these costs as business expenses, and the employees do not have to report the perk as income. In addition, employers are able to offer the cost of a transit pass to employees on a pre-tax basis. Advantages to employers include both a tax deduction for the expense, as well as savings on payroll taxes, FICA, disability insurance and payments into 401(k) plans.
More than 100 area employers offer Metro Transit Passes as a workplace benefit to more than 6,500 employees each month.
Employees. Take advantage of these benefits.
- Ride for less with an employer subsidy — If you work for a company that offers the Metro Commuter Advantage Program, your cost for a Metro Monthly Pass will be reduced. You’ll be able to get to and from work for a fraction of your current cost.
- Save even without an employer subsidy — Even if your employer doesn’t offer a transportation subsidy, they can offer the cost of a Metro Monthly Pass on a pre-tax basis. This will reduce your taxable income. The transportation will cost you less since it is being paid for with pre-tax dollars.
- Reduce auto maintenance and insurance costs — Most people who ride Metro own a car, but they ride because they can save thousands of dollars a year in gasoline and auto-maintenance expenses. Plus, commuting on Metro can even lower auto insurance rates because the insured vehicle is driven fewer miles.
- Save on parking — Riding Metro every day eliminates your parking expenses and hassles.
- Avoid Driving in Traffic — MetroLink’s speed and intervals are fixed. There is no “rush hour traffic.” It glides along, getting you to work and home on time, regardless of traffic congestion on the roads. And MetroBus riders won’t need to worry about driving in bumper-to-bumper gridlock — that’s the bus driver’s job.
- Get more time to yourself — Ultimately, there’s the benefit of simply having more time for yourself and your personal needs — and who doesn’t need more “me time?”
Take advantage of the Metro Commuter Advantage Program at your place of work. Simply ask your Human Resources Department to contact Metro’s Marketing Department at 314-982-1400 or email firstname.lastname@example.org
Employers. Take advantage of these benefits.
- Tax savings without an employer subsidy — You can save thousands of dollars in payroll taxes by offering the cost of public transportation on a pre-tax basis.
- Deductions with an employer subsidy — Under Section 132 (f) of the Internal Revenue Code, you can provide up to $120 per month to an employee who commutes by transit or vanpool. You can then deduct these transportation subsidies as a business expense.
- Parking savings — The more employees who commute on Metro, the less you need to spend to build, maintain or lease parking spaces. These savings really add up for employers with space constraint problems and growing business campuses.
- Reduce employee absenteeism and tardiness — Employees who ride Metro won’t be plagued with automobile maintenance and breakdown problems, they’ll have a reliable ride to work every day. And if they ride MetroLink, their commute will be free of traffic congestion, no matter how many rush-hour accidents occur.
- Increase employee retention — Employers with better benefits not only retain employees, they retain better employees. Employees typically realize increased productivity and reduced costs due to lower employee turnover — a win-win for employers and employees.
Take advantage of the Metro Commuter Advantage Program at your place of business, and make your workplace a better place to work. Getting Started is Easy. For more information, contact Metro’s Marketing Department at 314-982-1400 or email: email@example.com.