Tax Benefits

Federal Tax Code – Commuter Choice

Tax incentive programs can have a positive impact on your payroll tax liability.  Federal Tax Code allows employers to provide tax-free transit and vanpool benefits for their employees. Taking advantage of these benefits is easy, and programs can be set up at any time. There are three Commuter Choice options, each one offering benefits to you and your employees:

1. Employees Pay - and Save (Pre-Tax Payroll Deduction) Under the IRS Qualified Transportation Fringe Benefits law, employees can set aside up to $115 per month pre-tax for transit or vanpool expenses, much like a medical expenses flexible savings plan. When the employee purchases transit passes or vanpool seats, he/she pays no income tax on the benefit and the employer saves through reduced payroll taxes.
   
   
2. Employer Pays - and Saves (Tax-Free Employee Benefit) Paying transit and vanpool costs for your employees is a great tax-free benefit for them, and it provides you with a tax break too. In fact, you can provide a $115 benefit for a net cost of only $66.*

1. Employee & Employer Share the Cost - and Savings When the employer and employee share the cost of a transit pass or vanpool seat, both share in the savings. Each month, you could opt to pay $50 toward the cost of a transit pass or vanpool seat and allow your employee to deduct up to $65 to cover the rest of the cost. This is a win-win for both the employee and employer!

Employers across the U.S. have saved millions by taking advantage of these benefits. Contact BATMA for more information or download the following information.

1. IRS Employer’s Tax Guide to Fringe Benefits
2. Commuter Choice Overview

*Based on corporate tax rate of 34%

Georgia Telework Tax Credit

Georgia Telework Tax Credit.  Georgia is the first state in the country to offer employers a tax credit for teleworking. Under this law, employers are eligible for a one-time tax credit of up to $20,000 to offset program set-up costs, plus annual credits of up to $1,200 per new teleworker. Check out the Web site for more information or contact Amy at 404-842-2692 or amy@batma.org.

Download the Georgia Telework Tax Credit Form

Bicycle Commuters Tax Credit
Effective to taxable years beginning after December 31, 2008, this credit allows employers to offer a $20 per month tax credit per cycling employee. The credit will cover employers' costs to reimburse bicycle commuters for "reasonable expenses" including buying a bicycle, improvements, repair, and storage, if the bicycle is regularly used to travel to and from work.  Read more here.

Note: The information presented here does not constitute official tax guidance or a ruling by the U.S. Government.  Taxpayers are urged to consult with the Internal Revenue Service of the U.S. Department of Treasury or a tax professional for specific guidance related to the Federal tax law.