Publication Date
2015
Abstract
This policy brief examines the commuter tax benefit, which is a voluntary benefit program that allows employers to provide discounted or pre-tax transportation benefits to their employees. This voluntary benefit is one of eight types of statutory employee benefits that are excluded from gross income that would be subject to federal tax. Under the program, commuters are able to pay for qualifying transportation expenses with pre-tax income. These expenses are excluded from an employee's gross income for income tax purposes and from an employee's wages for calculation of employer payroll taxes.
Report Number:
TTI-2015-5
Link(s):
Document/Product
http://tti.tamu.edu/documents/TTI-2015-5.pdf
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