CommuterChoice.com: America's Way to Work

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Do you know how much you currently pay to commute to work? Considering the cost of gasoline, insurance, wear & tear, and parking, the typical commuter pays over $200 per month. That's over $2,400 per year, or put differently, the same as a $3,500 raise in your salary! Calculate your own cost of commuting, a service of CommuterPage.com.

Commuter Choice programs put more money in your pocket, often without any additional cost to your employer. The use of bus and rail transit, carpools, and vanpools, among other options, can save you money without any additional program at your employer.

If your employer offers pre-tax or employment benefits for the use of Commuter Choice programs, then you can realize additional tax savings from Commuter Choice. How does it work? Employees receive their transportation to work at no cost. In addition, the employee does not have to pay FICA or federal and state income taxes on the benefit.

The cost to the business is:

Direct Cost of Benefit: $780.00
Income Tax Deduction: ($265.20)
State Income Tax Deduction: ($46.80)
Annual Net Cost to Employer per Employee: $468.00

The additional benefit to the employee is:

Cost to Employee: $0.00
Real Value to the Employee: $780.00

Assumptions:

Employee pays 28% in federal income tax
In those states where state income taxes apply, this example assumes a 6% rate
Cost of commuter benefit is $780 per year ($65 per month)
Federal corporate income tax rate of 34%
In those states where state income taxes apply, this example assumes a 6% rate
Cost sharing is based on $420 per year ($35 per month) employer-provided benefit and $360 per year ($30 per month) pre-tax exmployee benefit.

	© 2010 Commuter Choice.com : All Rights Reserved This website was orginally developed by Managerial Technologies Corporation (MTC) as a project supported by the Environmental Protection Agency (EPA), US DOT Federal Highway Administration and the Association for Commuter Transportation (ACT). After the government funding expired, Libraries and Directories, Inc assumed the full operational burden of maintaining the site because of the belief that the best way to address oil consumption is through conservation.