(Friday, February 20, 2009)
The stimulus plan signed by the President on February 17, 2009 included some good news for commuters and their employers. In the plan was a commuter provision that nearly doubles the transit limit for commuter benefits. Now commuter participants will be able to elect up to 230 tax-free dollars a month to pay for their transit passes and tickets.
The new limit is effective immediately. WageWorks has updated our systems so participants can take advantage of the additional savings. This increase should be welcome news for commuters who spend more than $120 a month on their daily transit. It will be equally good for companies that offer a commuter benefits as part of their offering, considering the potential FICA savings now realizable.
The new transit limit translates to very real savings to commuters and promoting this change is a great way for businesses to demonstrate support for their employees during these tough times.
To learn more about the American Recovery and Reinvestment Act go to www.recovery.gov.
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for 58,000 employers and approximately 4.5 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.