February 22, 2020
Welcome to 2020: New Decade, New Transportation Benefits Increase
by Korrea Johnston
Welcome to the new decade! Starting January 1st, the Internal Revenue Service (IRS) increases the monthly pre-tax deduction limit for transportation fringe benefits from $265 to $270; that’s $5 more towards your transit or vanpool expenses! So, make sure to let your employer know if you’d like to increase your commuter benefits election.
Not yet saving money on the cost of your public transportation or vanpool to work? Let’s fix that! Whether you’re an employer or employee, we can give you the tools you need to gain a competitive edge or to save time and money on your commute. Visit goDCgo.com/commuter for transportation options and resources to help you explore a new commute.
What are commuter benefits?
Commuter benefits are transportation fringe benefits regulated by federal law that allow employers to offer employees up to $270 per month as a pre-tax deduction or tax-free subsidy to use on public transportation or vanpools.
Why should I sign up for commuter benefits?
We can give you three great reasons:
- Save Money. You can reduce your taxes up to $20 per week or $1,000 per year!
- Alleviate Stress. Taking transit gives you more “me” time to clear your mind before and after work.
- Get Healthy. You get twice as much exercise taking public transit than people who drive alone.
By participating in a commuter benefits program, you can expect to save up to 30-40% per month in your monthly commuting costs. Savings will depend on the type of commuter benefits program offered by your employer. Contact your HR department for program specifics.
What if my employer does not offer commuter benefits?
If you work in a DC-based office with 20 or more employees (full-time or part-time), your employer is required to comply with the DC Commuter Benefits Law by offering commuter benefits to employees or will be subject to fines. Notify your employer immediately if they are not aware of this already. You can also share our Employer Commuter Benefits Toolkit and let goDCgo’s Employer Services team walk your employer through the setup process.
Commute Smarter, Not Harder! We are always here to help. Contact us today at 202.299.2186 or email firstname.lastname@example.org.