The Transit Benefit Fare Program
Make Commuting Less Taxing

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Tax Savings

Employers and employees receive tax savings because the benefits are paid with pre-tax dollars, up to $125 per month.

Sample Employee Savings Amount Annual Transit Deduction $1,500.00 Federal Income Tax Saves ($420.00) Employee FICA 7.65% Saved ($114.75) State Income Tax Saved ($75.00) Total cost for $1500 in transit $890.25 Total Savings to Employee $609.75

Employer Savings Amount Initial Order ($1,500.00) Employee’s Pre-Tax Salary Deduction $1,500.00 Actual Cost to Employer $0.00 Employer FICA 7.65% Saved ($114.75) Employer Unemployment Tax Saved ($12.00) Net Savings to Employer $126.75

*Assumes employee pays 28% in federal income tax, 3% in state income tax, and 7.65% FICA and sets aside the maximum ($1,500.00 or $125/month) and assumes employer pays 7.65% FICA and 0.8% FUTA tax.