SAN MATEO, Calif. (Thursday, November 18, 2010)
/PRNewswire-USNewswire/ -- On January 1, 2011, the expiration of a valuable tax break will cost hundreds of thousands of the nation's mass transit riders hundreds of dollars in pretax savings, unless Congress acts to extend it. To help bring attention to this issue, and to give commuters a voice in Washington, WageWorks, Inc. — the nation's largest commuter and consumer-directed benefits administrator — has launched the advocacy website www.preservethelimit.com.
In 2009, Congress increased the amount that an individual could spend and save each month through participation in a pretax commuter program from $120 to $230 per month. This increase not only resulted in a tax break for participating individuals of between approximately $500 and $600 a year, but it also brought transit benefits up to the same contribution level as parking benefits. The new transit benefit limit was, however, only temporary and is set to revert back to $120 at the end of this year, unless Congress extends it.
It has taken over 25 years for the transit benefit limit to achieve parity with the parking benefit limit. If Congress does not act now to extend the $230 limit, the parking incentive will once again be almost double the amount permitted for transit benefits. As a result, the increased ridership and awareness gained over the past year and a half may be lost. Worse yet, the increased pretax savings enjoyed by mass transit riders will be eliminated. Mass transit riders should not be subject to less beneficial treatment than individuals who utilize parking incentives.
The website www.preservethelimit.com, which launched in late October, is aimed at mass transit riders affected by the expiring $230 pretax transit limit. The website provides helpful information, as well as an easy way for people to register their opinion with their senators and/or representatives on this specific issue.
Since the increase of the transit limit in 2009, a multitude of transit riders have taken advantage of the incentive, which has not only increased personal savings and mass transit ridership, but has also helped to improve air quality and the environment and decrease traffic congestion and oil consumption.
Go to www.preservethelimit.com to learn more about this issue and/or to send an email to your senator or representative asking them to support Senate Bill S. 322 or House Referendum HR. 981.
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.