Tax-free Monthly Benefit Increases to $105

News Articles
03/16/2005

Tax-free Monthly Benefit Increases to $105
AC Transit Marketing
03/16/2005

AC Transit riders can now save up to $500 a year thanks to changes in federal tax law. Beginning January 1, 2005 the maximum benefit for tax-free transit rises to $105 per month. Commuter Check is a “Qualified Transportation Fringe Benefit” under IRS Section 132(f). The law will allow employers to give employees up to $1,260 per year in Commuter Checks as a pre-tax payroll deduction or a tax-free employee benefit. Employers will save more on payroll taxes as well—up to $120 per employee per year.

“After informing our employees about the new cap, people in the office were very excited, frankly. We think it’s wonderful and only wished the cap was raised sooner,” said Ruth Soderback of Trinity Capital Corporation in San Francisco. “Commuter Checks now offer even larger savings to our employees. The news is especially exciting for those who commute from the East Bay. It’s a huge savings for them. Commuter Check allows us to help reduce emissions and assist in saving our environment.”

Commuter Check vouchers are vouchers redeemed for transit passes, tickets, and tokens and are accepted by AC Transit and all other transit operators throughout the Bay Area, and vanpools. About 80,000 commuters currently receive Commuter Checks at more than 4,800 Bay Area employers, who have enrolled since 1991.

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