Commuter benefits refer to financial incentives given to employees for their daily commute to the workplace. These benefits reduce taxable income for employees and payroll taxes for employers. Benefits can include free parking, a transit/vanpool subsidy, or a cash incentive or wage-based program. Employers have flexibility in designing the benefit. In most cases, employers offer at least two ways of reimbursements – per-taxation and post-s taxation.
Taxation of commuter benefits depends on the respective jurisdiction.
Eligibility for commuter benefits depends on individual company policies.
Commuter benefits are not only cost-effective for employees and employers but also turn out to be environmentally friendly.
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