Commuter Choice Tax Benefits

In 1998, Congress approved legislation that allows employees of corporations to pay for parking and transit (including vanpool) with pre-tax dollars while employers enjoy lower overall payroll taxes. The regulations concerning transportation benefits were finalized on January 11, 2001.

When employees buy with pre-tax dollars, they avoid federal, state and employment taxes, often saving up to 40 percent (up to the authorized pre-tax limits of $105 per month). The American Public Transit Association (APTA) has a concise information page explaining these benefits.

Chicago-area residents utilizing vanpools can apply for this benefit from a variety of agencies, including RTA, CTA and a private benefits administration company, Wageworks.

• The RTA Farecheck Program - Purchase vouchers from the RTA. The vouchers are used to pay for transit passes and tickets or can be used directly for your monthly vanpool invoice.
  
• The CTA Transit Benefits Program - Purchase Transit Cards at pre-tax prices.
  
• WageWorks - A third party benefits administrator that can administer your program for you.
  
• Administrative Management Group – A third party benefits administrator.
  

There are other programs available and as Pace learns about them, we will try to provide additional links, so check back often!
 

To get started call
(847) 228-2492