Have you ever wished that your employer would help pay for your daily transportation costs? Wish no longer! Introducing commuter benefits, perks designed to help take the hassle out of commuting.
This Know Your Benefits article is provided by TPG Insurance Services and is to be used for informational purposes only and is not intended to replace the advice of an insurance professional.
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What Are Commuter Benefits?
Sometimes called “transportation benefits,” these benefits help cover costs associated with traveling to and from work.
They are often provided tax-free, meaning the cost or reimbursement for the benefits are not included in your taxable income.
Commuter Benefits Examples
Commuter benefits can pay expenses related to qualified parking, transit passes and rides in commuter highway vehicles. The benefits—along with the costs associated—will vary based on the workplace, but here are some common examples:
- Qualified parking is parking provided at or near your workplace. It also includes parking at or near the location from which you commute to work using mass transit, commuter highway vehicles or carpools. It doesn’t include parking at or near your home.
- Transit passes include any passes, tokens, fare cards, vouchers or similar items that allow you to ride free of charge (or at a reduced rate) on mass transit or in a vehicle that seats at least seven adults (including the driver).
- Vanpooling is transportation between your residence and place of employment in a commuter highway vehicle that seats at least seven adults (including the driver).
How to Use Commuter Benefits
Typically, you would enroll in commuter benefits just like your other benefits, like health or dental insurance. There may be several options to choose from, so be sure to review your options carefully.
Depending on the option you select, you may receive a transportation voucher or pass. Other options may require you to pay for costs yourself, then be reimbursed.