What is a pretax commuter benefit?

What is a pretax commuter benefit?

A pre-tax commuter benefit is when employees can have the monthly cost of their commute deducted from pay before taxes, which means more take-home pay and for employers, saving on reduced payroll taxes.

What is the commuter pre-tax limit?

The IRS released the 2021 pre-tax limits for mass transit and qualified parking. The limits are effective on January 1, 2021. For 2021, the monthly limit for commuter benefits will be $270. That’s the same amount as 2020.

Do pre-tax commuter benefits expire?

Commuter benefits funds do not expire unless you leave your company. These funds will continue to rollover month to month, year to year, as long as you’re still at the same company. However, when you leave the company, any unused funds in your account will be returned to the company.

Can pretax commuter benefits be refunded?

Under federal rules, any unused funds for transit benefits cannot be returned to commuters, though the money can usually be rolled from one year to the next depending on an employer’s specific plan. Some employers may charge fees to do so.

Can I get a refund on my commuter card?

*For questions regarding returns or refunds for Transit and Parking products purchased with your WageWorks Commuter Card or WageWorks Voucher, please contact the agency where you purchased the product. WageWorks cannot provide refunds for their products.

What do I do with my commuter card balance?

How can I check my Commuter Card balance? Use the following options to access your Commuter Card balance with Edenred: Log on to your account on Edenred website. Call Edenred Customer Service at 833-584-8109 Monday-Friday, 8am-8pm and follow the prompts to check your balance.

Are pre-tax commuter benefits tax deductible?

Pre-tax commuter benefits are a work-related expense for employees, and are an employee benefit provided by a company. So, it seems like it might make sense for them to be deductible. Unfortunately, according to the 2019 Employer’s Tax Guide to Fringe Benefits, you cannot deduct pre-tax commuter benefits.

What are the benefits of a commuter benefit program?

By offering employees a pre-tax commuter benefit program, the cost of commuting deducted for employees reduces the amount of payroll being taxed. This means a savings of up to 7.65% on average, on payroll taxes. The more employees that enroll, the greater the savings. Why you should offer commuter benefits to your employees?

What are tax-free commuting dollars and how do they work?

The tax-free commuting dollars are provided on a product, like vouchers, smart cards, debit cards, or paid directly to transit and parking operators, to cover all commuting options and to ensure compliance with the IRS rules for commuter benefits.