What is the tax-free transit and vanpool benefit called Commuter Choice?
The United States' Transportation Equity Act for the 21st Century (TEA-21) made several changes to the Internal Revenue Code, one of which affects transit and vanpool benefits. While employers may continue to provide transit or vanpool benefits in addition to the current compensation they pay their workers, they may now provide those benefits in lieu of the existing compensation.
For more information about vanpool and carpool option in New York, please visit www.511ny.org/rideshare.aspx
Providing transit or vanpool benefits in lieu of salary will not increase costs to employers; rather, because payroll taxes do not apply to these benefit amounts, costs to employers will actually be reduced. Making benefits more flexible will attract and help retain well-qualified, motivated employees.
Information regarding the Commuter Choice program can be found on the public transportation page of the New York State Department of Trnasportation website.
Tax Free Qualified Transportation Fringe Benefits
Explanation of tax-free, qualified transportation fringe benefits.