The transit portion of the Commuter Benefit doesn't just make sense for employees – it helps the employers who offer it, too.
Because employers don't pay payroll taxes on pre-tax deductions made by employees, it makes substantial additional resources available for those employers. Employers have told us that they have used these savings to expand their businesses, reward employees with an additional benefit and to create new jobs.
In fact, employers save hundreds of millions of dollars in payroll taxes – millions of dollars that may have been used to hire thousands of new employees.
Thanks to legislation passed in late 2015, the disparity in the parking and transit monthly caps has been addressed permanently. The net effect is a further potential decrease in payroll taxes for participating businesses leaving them with more funds to grow their business.