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Tax Reform 101: What It Means for Commuters and Employers in 2018

While the 2018 federal tax reform bill prompted   several changes to the tax code, the Commuter Choice tax benefits program, based on Section 132(f), still allows employers and individuals to take advantage of a variety of financial incentives for using commute options. Metro Atlanta employees will still see a tax-free benefit from transit, vanpools and qualified parking, but the employer benefits do vary. 


Employee Incentive

Employer Incentive

Pretax only

Employees save on payroll taxes including FICA, local, state and federal withholding

Employers save from a decrease in FICA payments as a result of shifting taxable salary (for which employers pay FICA) to pretax (no FICA)

Subsidy only

Employees receive the subsidy tax-free and pay no taxes on the amount

Employers do not have to pay FICA on the subsidy but can no longer deduct the payment as a business expense

Combination of Pretax and Subsidy

Employees receive the benefits for each portion listed above

Employers’ situation is the same for each portion as listed above

The maximum benefit for employees is $260/month, which amounts to $3,120/year for transit, vanpools and qualified parking. Benefits can be combined such as transit + parking or vanpool + parking. While the bicycle commuting benefit has been eliminated, employers may still offer an incentive payment to bike to work that isn’t tax-free, but can be deducted as a business expense.

See what you can save when you change your commute.

For more information about how to change your commute or questions about our various incentive programs, visit www.GAcommuteoptions or contact us at

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