Flex Made Easy’s pre-tax Commuter Benefit Program allows employees to save on out-of-pocket parking and mass transit/van pooling expenses. State and Federal tax laws allow employees of the employer to save taxes on parking at work and transit or vanpooling expenses incurred to get to work. Employees save by setting up a pretax payroll deduction that reduces taxable income. Qualified expenses are exempt from Federal, State and FICA (Social Security and Medicare) taxes. Your tax savings will vary, depending on your deduction amount and your tax bracket, but most employees save around 25% on each dollar that is set aside in these programs.
The IRS sets the maximums for these programs, and generally they will update the maximums each year.