Based on current legislation, your company can offer transit benefits in the form of a pre-tax employee-paid payroll deduction, a tax-free employer-paid subsidy or a combination of both. Since transit benefits are considered tax-free benefits, not employee wages, your company can save on average of 7.65% in payroll taxes. Employees who participate in your transit benefit fare program don’t have to pay income taxes on the money set aside for their commute, saving up to 40% on their commuting costs. Offering a transit benefit fare program is a win-win for employers and employees. Below is an example of how an organization can save with just one employee using transit benefits.

Payroll taxes paid without pre-tax Benefit1
Monthly Gross Salary $4,000.00
FICA ($ 306.00)
Unemployment Tax ($  32.00)
Payroll Taxes Paid ( $338.00)
Payroll taxes paid with pre-tax Benefit1
Monthly Gross Salary $4,000.00
Transit Fare2 ($ 255.00)
Pre-Tax Income $3,745.00
FICA ($ 286.00)
Unemployment Tax ($  30.00)
Payroll Taxes Paid ($ 316.00)

Savings of $22 each month
$22 x 12 months = $264 in Annual Savings

1. Assumes 7.65% FICA & .8% FUTA.
2. Assumes employee deducts the maximum each month.

What will my employees be using?

View the Product Choices available to your employees.

How the program works

Because everything is done online, enrollment is easy and administration is simple. Monthly ordering allows employees to make changes if their transit needs change. Because payroll deductions and other administrative processes are determined by employers to suit their business needs, it is recommended that you speak with an RTA representative to discuss your options. Employers can contact the RTA and a representative will be in touch.