Employees use the vouchers, as cash, to purchase transit passes. This program can be used by employees who use either a private or a public transit service. Return to Top. Federal Tax Code. Employers then can take the subsidy as a business expense and save over providing the same value in gross income.
Employers save payroll taxes on the amount employees set aside.
A combination of both. Employers then can take the subsidy as a business expense and save over providing the same value in gross income. Employers save payroll taxes on the amount employees set aside. A combination of both. Employers then can take the subsidy as a business expense and save over providing the same value in gross income.