Effective January 1st, 2020, the Internal Revenue Service (IRS) will increase the monthly pre-tax deduction limit for transportation fringe benefits from $265 to $270. This $5 increase applies to commutes by vanpool and transit, and for qualified parking. Be sure to let your employees know in case they’d like to increase their commuter benefit contribution in the coming year.
Still haven’t gotten around to offering commuter benefits? Let’s fix that! The experts at goDCgo can work with your company to evaluate your employees’ needs and recommend an effective commuter benefits program.
What Are Commuter Benefits?
Commuter benefits are transportation fringe benefits regulated by federal law that allow employers to offer employees up to $270 per month as a pre-tax deduction or employer provided tax-free subsidy to use on public transportation or vanpools.
Why Should I Sign Up for Commuter Benefits?
Offering commuter benefits to your employees can help your company save money, recruit new talent, and get recognized.
- Tax Savings: By offering commuter benefits, employers will see payroll tax savings.
- Recruitment & Retention: Offering commuter benefits to employees increases job satisfaction, improves employee retention, and gives you a competitive advantage while hiring.
- Recognition: Offering commuter benefits makes you eligible for the Best Workplace for Commuters award, Leadership in Energy & Environmental Design (LEED) credits, and goDCgo’s Employer Ambassador
Do I Have to Offer My Employees Commuter Benefits?
If your office is based in DC and you have 20 or more employees (full-time or part-time), you are required to offer commuter benefits. If you do not, you are in violation of the DC Commuter Benefits Law and are subject to fines.
If you don’t have commuter benefits in place but would like to, we can help! goDCgo’s Employer Services team will help you navigate your options and walk you through the setup process. Contact us today at 202.299.2186 or email firstname.lastname@example.org.