Federal tax regulations allow employers to offer pre-tax salary deductions for transit fare costs to employees who use transit to get to work. In addition, the State of Maryland offers tax credits to employers who provide a transit benefit.
There a several ways you can offer this benefit to your employees:
- Allow your employees to purchase monthly passes using pre-tax dollars. Your employees save on Federal and State taxes.
- Purchase a monthly pass for your employees. They commute free and save on taxes. You take advantage of tax savings and the Maryland tax credit which allows you to provide a vital employee benefit for only $50.00 per year.
- Allow your employees to use pre-tax salary deductions plus purchase a portion of the monthly pass. The combination may allow you to provide this valuable employee benefit at no out-of-pocket expense to you!
Fill out the following form to receive more information about employer/employee benefits.