There are many tax benefits available when you help your employees to use commute alternatives. Georgia employers have saved millions in taxes. Taking advantage of these benefits is easy, and programs can be set up at any time. Here are some options:
Georgia is the first state in the country to offer employers a tax credit for teleworking. Explore the benefits.
Under the IRS Qualified Transportation Fringe Benefits law, employees can set aside up to $110 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.
Paying transit and vanpool costs for your employees is a great tax-free benefit for them, and gives you a tax break too. In fact, you can provide a $110 benefit for a net cost of only $66*.
Each month, you could opt to pay $35 toward the cost of a transit pass or vanpool seat and allow your employee to deduct up to $75 to cover the rest of the cost. You both win when it comes time for taxes.
For more information on all the tax benefits your business can receive, contact one of our employer specialists.
* Based on corporate tax rate of 34%