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 employer 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, employers, as a matter of company policy, are offering the full transit benefit to employees.
Some employers do so to reward workers for their contributions and accomplishments.
Others see it as an investment. When employers offer the benefit, it boosts employee morale and that can translate into more satisfied customers. When employers pick up the tab for their employees, the Commuter Choice transit benefit is equivalent to a low cost salary or wage enhancement. That's not all. Your employees would pay more in income taxes.