(Wednesday, January 02, 2013)
WageWorks Inc. (NYSE:WAGE), a leading provider of Consumer-Directed Benefits (CDBs), such as pretax accounts for health, commuter and other employee benefits, today praised Congress for extending parity for pretax transit and parking benefits through the American Taxpayer Relief Act of 2012, a deal signed to avoid the fiscal cliff. The action increases the pretax transit benefit to $240 per month, re-establishing parity between the transit and parking benefits. This provision, retroactive to 2012 and through 2013, can deliver annual savings of over $1,000 to individuals fully utilizing their transit accounts for public transportation travel between home and work.
"Congress's action reverses what amounted to a tax increase on hardworking Americans who utilize commuter benefits and public transportation to get to work," said Dan Neuburger, President of WageWorks Commuter Services, which is a member of the Commuter Benefits Work For Us coalition. "This legislation puts money back into the pockets of everyday commuters while also providing payroll tax savings for businesses," said Neuburger.
In 2012, the amount public transit commuters were allowed to set aside in their pretax transit accounts each month dropped from $230 to $125, while the cap for parking costs increased from $230 to $240 due to a cost of living adjustment
While the Act is retroactive to January 2012 and remains in effect through December 2013, Congress would still need to act in order to guarantee permanent parity in the future.
"A legislative priority for us this year is to make sure transit parity is guaranteed permanently after 2013," said Neuburger.
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.