Employee/Employer Transit Benefit
Transit benefits are one of the fastest growing employee benefits – and a benefit your employees can use every day! Beginning on Jan. 1, 2014, commuters will be able to use up to $130 in monthly pre-tax dollars to subsidize their commuting costs when using Laketran.
How to get started – There are 3 ways you can participate in Transit Benefits:
1. Employer pays for bus pass as a fully subsidized, tax-free benefit. Pass is paid for by the employer. Employer receives a tax deduction for the expense and saves on payroll related taxes. Employee receives benefit free of all payroll and income tax.
2. Employee pays for bus pass with pre-tax payroll deduction. Cost of bus pass is taken from pre-tax income thereby reducing taxable income. Employer and employee save because taxes are computed on the reduced amount of earnings.
3. Employee shares cost of pass with employer. The employer may pay a portion of the pass, then allow the employee to pay the balance with pre-tax or after-tax income.
Transit Benefits are a win-win! Employers and employees can save! Laketran is available to meet with your employees on an individual or group basis to show them how to use take Laketran from their home to work . These information sessions are free.
Do you have TRANServe, Visa Go, government-issued debit card?
Since the federal benefit is now $130 per month, Laketran has created a mail order form for employees using Federal Transit Benefit to accept two forms of payment. Download the Laketran Transit Benefit Ticket Order Form here.
All mail orders will be shipped via U.S. Postal Service. Please allow 5-7 business days following receipt of order for processing and appropriate handling time via U.S. Postal Service. Laketran is not responsible for delays in postal service delivery. Orders cannot be delivered through bus drivers.
Please review our Transit Benefits 2014 brochure for more information. For more information or to set up corporate purchasing, please contact firstname.lastname@example.org or call 440-350-1006. Benefits are authorized under Internal Revenue Code Section 132(f). The code is available at http://www.irs.gov.