If you’re looking for convenient commuter benefits for your client, P&A has you covered. We offer two types of plans:
- Parking plan — allows employees to set aside pre-tax dollars to pay for parking expenses where they work.
- Transit plan —allows employees to use pre-tax dollars to pay for their public transit expenses, such as subways, buses, and commuter rail.
Participating in this plan will enable employees to avoid taxes on the money they use to pay for work-related mass transit and parking. Employees may make an election to reduce their taxable pay by the amount they expect to pay for parking. The amount an employee elects is withheld over time from their paychecks. Payroll withholdings are credited to an account in their name that is used to pay the cost of their eligible expenses. Since the amounts withheld from employees’ pay are not included their W-2 income for federal or state income tax purposes or Social Security tax purposes, and since there is no tax on the plan benefits your client receives, the cost of their mass transit and parking becomes tax-free.
To learn more about commuter benefits for your client, submit a contact us request to discuss your needs.
*For New Jersey taxpayers, the New Jersey state income tax will apply to money withheld from pay for any benefits that an employee elects.