The maximum tax-free benefit may increase each year based on increases in the cost of living. Commuter Choice may be used on public transit buses, trains, ferries and vanpools. Not every agency can afford to pay for the full transportation benefit so the Commuter Choice has built-in flexibility. Take a look at the options. A Program for Every Budget Employer Paid Benefit Option Increasingly, Federal employers, as a matter of good public policy, are offering the full transit benefit to employees.
Some agencies do so to reward workers for their contributions and accomplishments.
Others see it as an investment. When agencies offer the benefit, it boosts employee morale and that can translate into more satisfied customers. When agencies pick up the tab for their employees, the Commuter Choice transit benefit is equivalent to a low cost salary or wage enhancement. If the same amount were to be given as a pay increase, it would cost your agency more in FICA and Federal retirement system contributions. That's not all.