The convenience of getting their monthly bus pass at the office . The employer's cost of providing this benefit can be deducted as a normal business expense. Even better, unlike ordinary wage payments, employers do not have to pay their share of Federal Payroll taxes on transit commuter benefits. This savings alone is usually more than enough to cover any cost of administering the program. A Program for Every Budget Increasingly, employers, as a matter of policy, are offering fully subsidized transit benefits to employees.
Some employers do so to reward employees for their contributions and accomplishments.
Others are subsidizing a portion of the monthly fares and allowing the employees the option to fund the balance from pre-tax income. If your company cannot cover the cost of the benefit this year, you may want to consider a pre-tax deduction program. Everyone Wins Participating in ESP is an opportunity to make a positive impact on the environment by reducing congestion on roadways and improving air quality. With MTA s ESP, everyone living and working in the Des Moines area is a winner, especially with the heavy traffic congestion predicted during the upcoming reconstruction of I-235. MTA s ESP is as user-friendly for the employer as it is for the employee.