by WEX Benefits
With many employees returning to the office, your work commute expenses may be on the rise. But so has your opportunity to save on these expenses. In our latest episode of our Benefits Buzz open enrollment series, watch our podcast below to learn how you can benefit with commuter benefits. Or keep reading to learn four facts about these plans.
How do you save with commuter benefits?
You save because you can place funds into a commuter benefits plan before they are taxed. For example, through an employer-sponsored commuter benefits plan, your funds can be taken from your gross earnings and deposited into your commuter benefits account before they’re taxed as earnings.
Who is covered by your commuter benefits?
Just you, the participant.
What expenses are covered by commuter benefits?
Covered expenses include:
- Mass transit (bus, van, commuter rail or subway).
- Vanpooling (including uberPOOL and Lyft Line in select cities).
- Parking near your place of business or near the location where employees commute using mass transit (such as a park-and-ride facility).
How will you benefit?
At the heart of commuter benefits is your ability to save as much as 40 percent (through pre-tax savings) on commuting costs. The financial incentive is a big one, but you also may benefit in other ways, including:
- Reduced stress. Did you know that the average American in 2019 spent over 27 minutes driving to work each day? Encouraging your employees to use a Commuter Benefits program helps your employees get rid of the often stressful drive to work.
- Improved wellness. In addition to the stress factor, one recent study found that people who drive to work have higher body mass indexes and weigh more than people who don’t.
The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.