Employer information
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Federal Commuter Benefit Program
What is the Federal Commuter Benefit Program?
The Federal Commuter Benefit Program is supported by the City of Gainesville Regional Transit System to offer local organizations the opportunity to take advantage of the Commuter Tax Benefit.
The Commuter Tax Benefit is a tax break for employees and the employers who help them with transportation to and from work. It provides your employees with a new choice for their daily commute, and you’ll save on payroll taxes.
Employer Options
If you pay for the cost of the RTS Pass and distribute it to your employees, the cost can be deducted as a normal business expense and you do not have to pay federal payroll taxes on it – a savings of at least 7.65%! Your employees can also purchase the RTS Pass on their own with pre-tax dollars that are added to their wages by a separate reimbursement check.
Employer Benefits
The payroll tax savings alone
are more than enough to cover any cost of administering
the program – you pay for the cost of the
RTS Pass and distribute it to your employees, or
your employees purchase the RTS Pass on their own.
Either way, you and your employees will save in
federal taxes with the Federal Commuter Benefit
Program!
As an added benefit, your employees will arrive to work relaxed and refreshed because they’ve avoided the headache of rush-hour congestion. It’s a terrific fringe benefit that’s affordable!
How It Works
The RTS Pass is easy to administer, and the Regional Transit System staff is ready to present the program to you and provide informational materials to distribute to your employees.
Who Is Eligible
Private employers, non-profi t organizations and public agencies with 100 or more employees can participate in the RTS Pass Program. Federal government employees and members of the military services are also eligible to receive these transit commuter benefi ts. However, self-employed individuals, partners, 2-percent shareholdersof S corporations, sole proprietors and other independent contractors are not eligible under IRS rules. *The City of Gainesville’s Accounting Department does not support the DOT voucher program.
Additional Information
Please call Theresa Harrison at (352) 334-3676 if you wish to schedule an informational meeting about the Federal Commuter Benefit Program for yourself or your staff.
For more information visit http://www.commuterchoice.gov/employ/index.htm