TAX-FREE COMMUTER BENEFITS FOR YOUR EMPLOYEES
Subsidizing CitiWorks passes is a great addition to your employee's fringe benefit package because they are tax-free for your employees and fully tax-deductable for your business.
CitiWorks Program
Tax-Free Employee Benefits
The Citibus Employee Pass Program provides tax-free incentives to encourage your employees to take the bus - freeing up parking for your customers and lessening the demand for employee parking. Transit benefits are tax-free to employees and tax-deductible for employers through Internal Revenue Code 26 USC 132-f (www.irs.ustreas.gov).This permits employers to offer employees a tax-free benefit, up to $230 per month, to commute to work using public transportation, rather than driving. Transit benefits are tax-deductible for employers like commonly offered employee fringe benefits.
Subsidized Citi Works Passes
The CitiWorks Pass Program enables participating employers to offer tax-free subsidies to employees buying a 31-Day Pass at work. Citibus establishes on-site pass outlets for participating employers and assists them in marketing the benefits.
Employer-Paid Benefit Option
Employers offering full transit benefits for employees can take full advantage of this federal tax break. In Lubbock, the total cost of a CitiWorks pass (Park&Ride and the CitiWorks monthly pass program) is fully deductible for employers, as the cost is less than $115 per month. Employers offering transit benefits (in lieu of wage increases) will save on FICA, Federal employment and Federal income taxes.
Employee-Paid Pre-Tax Benefit Option
By establishing a pre-tax deduction program, employers can allow their employees to use part of their existing gross income to pay for their bus pass. Even though the employee pays full price for the transit benefit, they save by paying less Federal payroll and income taxes. The amount of the pre-tax payroll deduction is no longer reported as taxable salary .
Fare Share Benefit Option
This option enables employers and employees to share the costs. The employer subsidizes a portion of the cost and allows employees to pay for the balance from pretax income. Whatever amount the employer contributes, they will save on payroll taxes. Employees will save on income taxes by having their portion of the cost regularly deducted from their paychecks.
More Benefits for CitiWorks and Park&Ride Programs
Employees participating in these program are eligible for NiteRide at ½ price ($2. Per trip). NiteRide is a curb-to-curb evening service which runs from 6:45 p.m. to 10:30 p.m Service is within the Lubbock city. Citibus requires individuals who wish to use the NiteRide service to register for the service prior to scheduling trips. Registration can be completed in person at the Citibus offices located at 801 Texas Avenue.
Get On board with the CitiWorks Employee Pass Program
Getting onboard the Citibus Employee Pass Program is easy. Just contact Citibus' Marketing Department to get started. We will determine your employees transportation needs,establish routes, create monthly passes then get your employee on board. Passes are available through Citibus or your HR department for the convenience of your employees. Citibus can also help market the new tax-free transit benefits to your employees with colorful posters and ready-to-use promotional ads for ongoing placement in company newsletters.
For More Information or to Get Started Contact
Val Cochran
Citibus Sales & Marketing
at 712-2011 or vcochran@citibus.com
Sample Tax Benefit Plan Enrollment form (in pdf format)
***Please check with your tax advisor for applicability to your business or log on to http://www.publictransportation.org/reports/asp/pays_to_ride.asp for more information .