Employers may provide this new benefit through transit voucher programs such as the RTA Transit Check program or through cash reimbursements of vanpool expenses. This change allows employees to save on commuting costs while reducing employers' payroll costs. These benefits can be provided either in addition to current compensation or in lieu of current compensation. They are not, however, allowed to be part of cafeteria plans or flexible spending accounts. The employer pays for the benefit and gets a tax deduction.
Employees get the benefit amount tax-free.
Employers do not pay for the benefit but allow employees to take advantage of the tax savings from using their gross income to pay for qualified commuting expenses. Employers see a reduction in their payroll costs of about 10 percent on the amount set aside since they do not pay taxes on this amount. Employers may share the cost of commuting with their employees. Click here to download an RTA Transit Check order form The RTA is not responsible for determining compliance with the tax code or IRS requirements.