Commuter benefits

Commuter benefits are financial incentives that enable employees to set aside pretax dollars to pay for qualified expenses related to travel to the workplace. These benefits reduce taxable income for employees and payroll taxes for employers. Benefits can be free parking, a transit/vanpool subsidy, or a cash incentive or wage-based program. Employers have flexibility in designing the benefit, but most offer at least two methods of reimbursement—with pretax dollars or after-tax dollars