MetroCard Savings 30-Day Employers Save, MetroCard ... - MTA
Employers Save, Commuters Save
Pre-Tax Transit Benefit Programs
Join a program; add cash to your bottom line and put more money in your employees' pockets.
How It Works Federal tax law allows employees to use pre-tax dollars to pay for transit commuting costs through employersponsored programs. Up to $245 per month is exempted from federal, state, and city income taxes, social security and Medicare taxes, and federal unemployment insurance.
Employee Savings Employees sign up for payroll deductions that are used to pay transit costs with pre-tax dollars and save, regardless of income bracket or choice of transit services. Subway or bus customers in the 15% federal tax bracket who participate in a Pre-Tax Transit Benefit Program save approximately 29% on every subway and bus ride. With the average cost of a ride at $2.38 thanks to Pay-Per-Ride MetroCard? with bonus, participating employees would end up paying just $1.69* a ride. For an employee using a 30-Day Unlimited Ride MetroCard, the cost drops from $112 to $79.41 Commuter rail customers in the 25% federal tax bracket who purchase a monthly ticket on Long Island Rail Road or Metro-North Railroad could lower their costs by $48.88, saving an average of 20%.**
Employer Rewards With a Pre-Tax Transit Benefit Program you'll improve your bottom line while offering a great morale booster to your employees. It's like raising take-home pay. At the same time you can save up to $114.75 per employee per year. And you'll be contributing to the quality of life in the region by promoting the use of subways, buses, trains, ferries, and van pools.
How To Join Contact a transit benefit service provider who will work with your company to set up and market a customized program to suit your business needs. Several providers serve the New York metropolitan region. For a list, visit .
* Examples based on NYC resident in 15% federal tax bracket. ** Examples estimated based on MTA redership data for employee in 25% federal tax bracket. Based on a contribution of $125 per month by an employee earning income
of less than $106,800. Does not include fee charged by benefit provider. A federally funded organization developed by the Association for Commuter
Transportation to help employers connect with service providers.
PR13077_08
MetroCard Savings
30-Day MetroCard Savings
$2.50
$2.38
1 $ .69*
Save
29%
Base Fare
Avg. Cost Avg. Cost
per ride per ride
with
with
Pay-Per-Ride Pre-Tax
MetroCard Transit
with bonus Benefit
$112.00
Base Cost
$79.41
Save $32.59
or
29%
Cost with Pre-Tax Transit Benefit
Average Monthly Commuter Savings on LIRR and MNR**
$245.00
Average Monthly Commuter Fare
$196.13
Save $48.88 per month
or
19.9%
Cost with Pre-Tax Transit Benefit
Employer Payroll Tax Savings
$22,950.00
$11,475.00
$5,737.50
$1,147.50
10
50
100
200
Number Of Employees
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