Management & Operations

Commuter transit benefits to increase

Posted on December 28, 2007

Starting Jan. 1, 2008, businesses will be able to provide employees with tax-free transit commuter benefits of up to $115 a month, according to APTA. The previous maximum allowed was $110 a month.

The amount available for transit commuter benefits is still less than that allotted to parking benefits, which will increase by $5 to $220 a month in 2008. Federal legislation allows an employee to receive transit benefits either by receiving up to $115 a month in tax-free benefits paid by the employer to cover commuting costs on all modes and combinations of public transportation and vanpool commuting costs, or have employees pay for commuting costs using pre-tax payroll deductions of up to $115 per month. A combination of these two programs may also be used.

Employers interested in starting a transit benefit program can find helpful information at the Best Workplaces for Commuters Website,, which also lists a variety of companies, including top Fortune 500 companies that offer transit benefits.  

For more information on transit benefits, go to

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