Commuter Benefits

Commuter Benefits policies explain how eligible employees can use pre-tax payroll deductions (and, where required, additional employer-provided options) to pay for qualified commuting expenses like transit passes, vanpools, and qualified parking under local commuter benefit laws in places such as New Jersey, New York City, San Francisco, and the Bay Area.

How to Write a Commuter Benefits Policy

• Start with "why" and introduce the concept.
• Explain the pre-tax commuter benefit and that it lets employees use pre-tax pay for eligible commuting costs.
• Define eligible expenses at a high level (for example, transit passes, qualifying shared-ride commuting, and qualified parking) and tie them to applicable tax rules.
• Describe any additional commuter benefit options your organization offers beyond pre-tax deductions.
• Tell employees how to enroll or request the benefit, including submitting a written request so payroll can set up the deduction or benefit.

For advice on writing a Commuter Benefits policy in a specific jurisdiction, see below.