Tax Benefits

Georgia employers have saved millions in taxes by helping their employees use commute alternatives. Taking advantage of these benefits is easy, and programs can be set up at any time.

Commuter Choice Tax Benefits 

The Commuter Choice tax benefits program, based on Section 132(f) of the federal tax code, allows employers to offer employees a variety of financial incentives for using alternative commute modes. Section 132(f) covers transit and vanpool benefits as well as qualified parking. 

Benefit Employee Incentive Employer Incentive 
Pretax only Employees may set aside up to $315/month for transit, vanpools and/or qualified parking and 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 

12 Free Services for a Better Workplace

Explore the free services we offer to help your employees reduce drive-alone commuting and improve air quality.

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