Your business can save money on taxes by:
- Subsidizing some or all of the costs of employee transit passes and claim this as an allowable business expense. For 2017, the allowable limit is $255 per month per employee.
- Offering pre-tax payroll deductions to employees to pay for transit passes. Because this reduces the employees' taxable income, you pay less in unemployment and other payroll taxes.
You can save money on transportation costs and taxes by:
- Paying for transit passes with pre-tax payroll deductions, thus reducing your taxable income.
- Inquiring with your employer about receiving a qualified bicycle commuting reimbursement ($20/month). This is a non-taxable fringe benefit for employees.