There are so many reasons to use Smart Travel. Reducing traffic and pollution are just two. Did you know you could not only save money, but be rewarded to use some smart travel options? And that’s not even mentioning all the health benefits you get from biking and walking. With so many great reasons to use Smart Travel, why wouldn’t you?
Dibs Incentives are Coming Soon!
Look for full details on how you can get rewarded for using Smart Travel in May 2017.
Changes to the federal tax code have made transportation fringe benefits more appealing than ever. Four tax advantage transportation benefit options are available. Learn more in the Employer's Tax Guide to Fringe Benefits.
Benefits in Addition to Salary
Employers may provide up to $255 per month starting January 2016 to commuting employees for transit, parking or vanpool fares or $20 per month to employees who commute to work by bicycle. The employer pays for the benefit and receives the equivalent deduction from business income taxes. Employees receive the benefit completely free of payroll and income taxes, in addition to their current salary. Employers can pay directly for vanpool expenses or purchase transit passes for employees. Alternatively, they can reimburse employees if these passes are not available and the employee provides a receipt.
Benefits Instead of Salary
Employers may permit their employees to set aside up to $255 per month of their pre-tax income to pay for transit, parking and vanpools. Employees save on income taxes since that amount is no longer reported as taxable salary. Employers are able to reduce their payroll costs.
Employers may share the cost of commuting with their employees. Employers can give their employees part of the cost in addition to salary and allow their employees to set aside part of their pre-tax income to pay the remaining amount. The employer can subsidize any amount, but only $255 per month is tax deductible. Any amount over that is taxable.
Employers may offer employees the option of cashing out the value of employer provided parking. Employee may receive up to $255 per month tax free for giving up their parking space.