Save Time & Money
on Your Commute to Work

Commuter Benefits

{Pay for Transit and Parking
with Pre-Tax Dollars}

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. 

Employee Commuting

  • Save an average of 30-40% on public transit as part of your daily commute to and from work
  • Reduce your overall tax burden—funds are withdrawn from your paycheck for deposit into your account before taxes are deducted
  • No waiting for Open Enrollment—sign up anytime to start saving

The monthly tax-free allowable limits will be:

  • Transit and eligible vanpooling:  $255
  • Commuter parking: $255

Using your WageWorks Commuter Account is as easy as 1-2-3:

  1. Decide how much to contribute to your WageWorks Commuter Account based on your monthly public transit expenses.
  2. Make monthly pre-tax contributions to your commuter account. Funds are moved from your paycheck to your WageWorks Commuter Account before taxes are deducted.
  3. Pay for eligible public transit and parking expenses using several no-hassle payment and reimbursement options:
    • WageWorks® Commuter Card. Use this card where you pay for transit. You decide how much money to load onto your card each month to cover your monthly commuting costs.
    • WageWorks® SmartCards. WageWorks Commuter Account contributions are loaded directly onto transit agency SmartCards where available.
    • Buy My Pass. Identify which pass you want to buy from which transit or vanpool agency, and it’s delivered to your home.
    • Pay My Provider. Access your account online and fill out a simple form to pay your transit agency or parking provider–no receipts or claims forms required.
    • Pay Me Back. Get reimbursed for commuting expenses you’ve already paid via direct deposit or a check being mailed to you.

Payroll Deductions

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.

Program Fees

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 the calculator to see how much you can save with a Commuter Transit Account.

*Monthly contribution limit in 2017 for transit