Through this plan, employers subsidize the cost of monthly RTA passes to assist their employees in commuting to and from work. Not only does this procedure help attract and keep key workers, but employers can choose their own level of involvement, thereby controlling costs . And by offering this perk, employers get the competitive edge they need n a tight job market. Commuter Advantage is easy to implement, manage and control. Pre Tax Compensation Employees set aside some of their pretax income to pay for the transit pass.
Employees save on payroll and income tax on the amount of the benefit they purchase.
Employer's payroll cost is reduced since payroll taxes do not apply to the amount set aside since it's treated as a benefit. Employer receives an equivalent deduction from his business income tax. Employees receive the benefit completely free of all payroll and income taxes, in addition to their current compensation. Employer receives an equivalent deduction from its business income taxes. Greater Cleveland Regional Transit Authority Page designed and maintained by RTA Web Team.