Transit Tax Benefits Program
With transit, everyone goes farther. Transit Commuter tax benefits add up to savings for both employees and companies.
What are transit tax benefits?
- IRS tax code Section 132(f) allows companies to deduct the cost of a transit pass from employee paychecks, pre-tax.
- This lowers the amount employees pay each month in both income and FICA taxes – and reduces the amount companies pay in payroll taxes.
- Through the payroll tax savings, the program essentially pays for itself
– a win-win for the company and employees.
- The more employees participate
in the program, the more a company can save.
How can I participate? How can my company start a
transit tax benefits program?
- Transit tax benefits are only available through an employer. Employees should ask their Human Resources Department to contact one of JTA’s transit benefits partners to sign up for the program or get more information:
- EDENRED Commuter Benefit Solutions Larissa Lazaro, email@example.com (646) 895-0995
- Wage Works
Patrick Williams, Patrick.Williams@wageworks.com (646) 746-0248
Who is eligible?
- All companies are eligible – small, medium, large – and in any industry.
- All employees are eligible for the transit tax benefits, this includes full-time, part-time, union, non-union, hourly or salaried.
How does the transit tax benefits program work?
- Your company will first select one of JTA’s transit benefits partners to implement the program – EDENRED Commuter Benefit Solutions or Wage Works.
- Each month, the transit benefits administrator will deduct the cost of a transit pass from the paychecks of participating employees before taxes are calculated
($50 for JTA’s 31-day pass).
- $50 in value will transfer to a special MasterCard or Visa debit card.
- The employees then use the debit card at
a JTA ticket vending machine, the ticket window at Rosa Parks Transit Station or the JTA website to buy a JTA Star Card where they can load a 31-day pass.
- The debit card will only work at transit agencies, so customers cannot get their pass from a retailer.
- Onboard the bus, employees will tap their STAR Card on a special reader on the farebox to pay their fare.
How much money will I save on taxes? What about my company?
The savings will vary from person to person and company to company, depending on how many employees participate and their tax bracket.
What are some other benefits
of riding JTA?
- Reduced car costs: Employees can save thousands of dollars a year in gas and car maintenance expenses, plus lower auto insurance rates.
- Less Stress: No more frustrating rush hour drives = happier employees.
- More Personal Time: Employees can read a book, take a nap, get caught up on work, relax to your favorite tunes, or enjoy their ride.
- Save the Planet: Riding transit reduces air pollution and is better for the environment.
Can I stop or discontinue the program? Can my company?
Yes – neither employees nor employers are under any obligation to remain in the program.
How do employees learn to ride JTA? How do I know what route to take or where to catch the bus?
- JTA has a new trip-planning application at www.jtafla.com and a real-time passenger information application that will enable employees to track their bus.
- JTA’s Customer Service Center representatives will be happy to help employees plan their commute. Call (904) 630-3100 or TDD (904) 630-3191.
- Hours of operation: Monday-Friday 5:30 a.m. to 8:30 p.m., Saturday - 8 a.m. to 5 p.m., closed Sundays and holidays
- In December 2014, all of JTA’s routes were revamped to provide faster, more efficient and more frequent service to our customers.
- Coming in December 2015, our First Coast Flyer bus rapid transit service will begin operation, with new natural gas-powered buses, upgraded bus stops and route frequencies of every 10-15 minutes
What else do I need to know
about JTA’s partner agencies?
- EDENRED Commuter Benefit Solutions®
has administered cost-saving commuter benefits for more than three decades. We are the nation’s leading provider of commuter benefits, serving approximately 10% of Fortune 500 companies, 20% of Fortune 100 companies and 53 of the nation’s premiere benefit administrators. We’ve been making commuter benefits a staple in employee benefit packages nationwide since 1985 and currently manage commuter programs for some of the largest transit authorities in the country.
- WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks administers CDBs, including pre-tax spending accounts, as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA and other employee benefits.
For additional information, please contact the JTA’s customer service line at (904) 630-3100; TDD (904) 630-3191.