Commuter Transit Account
With a WageWorks® Commuter Account, you can use tax-free funds to pay for public transportation—including train, subway, bus, ferry, trolley, and vanpool—and qualified parking as part of your daily commute to work. Funds are moved to your account before taxes are deducted, which reduces your overall tax burden. This program is currently available to employees located in offices in New York City, Washington D.C., or within the Bay Air Quality Management District (BAAQMD) in California.
The monthly tax-free allowable limits will be:
Using your WageWorks Commuter Account is as easy as 1-2-3:
Payment for fulfilled passes is the responsibility of the participant, regardless of your eligibility at the time of fulfillment. The total cost of your monthly election will be split between two paychecks, with funds deducted on the 15th and 30th of the month prior to the benefit month. For example, a monthly $85 transit pass for the benefit month of November will be deducted from your October 15th and 30th paychecks. Payments from terminated participants will be made from the last paycheck issued. If you did not make enough in income to take a deduction and your balance owed exceeds $120, you will become ineligible to participate in the program until your balance is below $120.
While there are administrative costs associated with running the program and delivering your passes, those costs are entirely paid for by GM. You pay absolutely no fees to WageWorks or GM. You only pay for your transit costs.
Savings With Your Commuter Transit Account
A Commuter Transit Account is a monthly account lets you pay for qualified public transit expenses and parking on a pre-tax basis. Simply decide how much to contribute to your Commuter Transit Account up to the allowed monthly limit. The IRS sets the contribution limits. You can contribute up to a maximum of $255 per month* for transit and eligible vanpools and $255 per month for qualified parking. A different limit may apply to you according to your employer’s plan.
Example of Tax Savings with a Commuter Transit Account
|Your Estimated Tax Savings|
|Without Commuter Benefits||With Commuter Benefits|
|Gross annual pay||$60,000||Gross annual pay||$60,000|
|Tax rate (30%)||-$18,000||Max. annual Commuter
|Net annual pay||=$42,000||Adjusted gross pay||=$56,940|
|Annual commuting expenses||-$3,060||Tax rate (30%)||-$17,082|
|Final take-home pay||=$38,940||Final take-home pay||=$39,858|
Take home this much more with a Commuter Transit Account $918
All figures in this table are estimates and based on an annual salary of $60,000 and maximum contribution limits to the benefit account. Your salary, tax rate, commuter expenses, and tax savings may be different.
Use calculator to see how much you can save with a Commuter Transit Account.
*Monthly contribution limit in 2017 for transit