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Frequently Asked Questions for Employers
Find answers to questions about enrollment, taxes, and TransitChek products.
- What are the monthly allowable tax-free amounts for commuter benefits?
- How does my company get started with the TransitChek Program?
- How can my company sign up for the Premium TransitChek Program?
- What is the maximum my employees can deduct?
- How do employees pay for their benefit?
- What payroll taxes are exempt?
- How much can my employees save with TransitChek?
- What is an annual Premium TransitChek® MetroCard®?
- What is TransitChek® Card?
- What is a TransitChek® Voucher?
- What is the TransitChek QuickPay® Card?
- What is the TransitChek CashBack® Reimbursement Service?
- What commuter benefits can you provide employees with special needs who use paratransit services?
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- What are the monthly allowable tax-free amounts for commuter benefits?
- The monthly maximum allowable tax-free amount for commuter benefits as of January 1, 2009, is $120 per month for transit and vanpool costs, and $230 per month for commuter parking.
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- How does my company get started with the TransitChek Program?
- Employees decide how much they want deducted from their pretax salary every month. They can use an Employee Enrollment Form to help them decide. The employer arranges for the amount to be deducted, then completes the TransitChek Order Form *. Forms are available for both New York Metro and San Francisco Bay Area employers. *To view PDF documents, you need Adobe® Reader®. The reader is available for free at http://www.adobe.com/products.
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- How can my company sign up for the Premium TransitChek Program?
- You can call a sales representative at 1-888-632-3228 or email sales@transitcenter.com. Our experienced representatives will work with you to figure out which program is best suited to your company's needs.
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- What is the maximum my employees can deduct?
- Federal limit currently allows your employees to use up to $120 a month/$1,440 a year of their pre-tax salary to pay for their commuting expenses. If employees need a parking benefit, they are allowed to use $230 a month/$2,760 a year in addition to their commuting expense.
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- How do employees pay for their benefit?
- Employees pay for their benefits through periodic payroll deductions.
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- What payroll taxes are exempt?
- TransitChek benefits are excluded from most payroll taxes. They are exempt from federal, state, and city taxes along with Social Security and Medicare in New York and Connecticut. New Jersey does not exempt pre-tax transportation benefits from state taxes only. However, it is exempt from New Jersey state taxes only if you give it free to your employees as a fringe benefit. Consult your tax advisor for details.
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- How much can my employees save with TransitChek?
- Federal law allows employees to set aside up to $115/month before taxes are applied to use for mass transit and vanpool commuting. This can translate into big savings depending upon the amount excluded from taxes and the employees' tax bracket. Here are examples of savings:
- TransitChek
- · If your employees use mass transit to commute to and from work, and set aside $120/month, $1,440/year of their pretax salary for commuting expenses, they can save up to $540 or more a year in taxes.
- Premium TransitChek
- · Employees can save up to $927 or more a year in taxes if they drive and park at work, and set aside the allowable $230 maximum deduction per month for their parking expenses.
- · Employees can save up to $1,333 or more a year in taxes if they drive, then park their car at or near a rail, bus or ferry station, and then commute using mass transit. This is assuming they set aside $120/month of their pretax salary for transit expenses the allowable $230 maximum deductible for parking expenses, for a total of $4,020.
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- What is the annual Premium TransitChek MetroCard?
- An annual Premium TransitChek MetroCard is a special MetroCard for Metro New York commuters that can only be purchased through TransitCenter. It is valid for one year and is good for unlimited local rides during the year on MTA New York City Transit subway and buses. It is also accepted on other local buses that accept MetroCards. The annual Premium TransitChek MetroCard is not valid for Express Bus service.
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- What is the TransitChek Card?
- The TransitChek Card*, a prepaid Visa card, is the nation's first anonymous card designed specifically for commuter benefits. Pre-loaded with tax-free dollars, the TransitChek Card can be used to purchase transit tickets and passes at station windows and ticket vending machines wherever Visa debit cards are accepted. Visit the TransitChek Card Info Center to learn more about this product.
- *The TransitChek Prepaid Visa® Card™ is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.
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- What is a TransitChek Voucher?
- TransitChek Vouchers are vouchers that are accepted by transit operators and eligible vanpools for the purchase of tickets and passes, or to pay vanpool expenses. They are used just like cash, and cannot be replaced if lost or stolen. Mass Transit Vouchers can only be used to purchase transit tickets and passes or to pay for vanpool expenses. You may not receive cash back from the operator accepting the Vouchers. You must purchase tickets and passes equal to or greater than the value of the Vouchers. Vouchers are valid for a year and should be used as soon as possible to avoid expiration.
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- What is a Premium TransitChek QuickPay Card?
- The TransitChek QuickPay Card*, a prepaid Visa® card that can be used to purchase transit tickets or passes, or pay for commuter parking at participating transit and parking locations that accept credit and/or Visa debit cards. The Card can only be used to pay for transit and parking expenses. It is not accepted anywhere else or for any other purpose.
- *The TransitChek QuickPay® Prepaid Visa® Card™ is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.
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- What is the TransitChek CashBack Reimbursement Service?
- TransitChek CashBack is an alternative method of providing parking benefits to Premium TransitChek participants. They are used in parking facilities that do not accept the TransitChek QuickPay Card.
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- What commuter benefits can you provide employees with special needs who use paratransit services?
- Providing commuter benefits for all employees is an important part of our mission. Our TransitChek Program includes benefits for those commuters using paratransit services which, by law, are available by transit systems nationwide. We can provide regional paratransit passes, such as the coupons used by the MTA's Access-A-Ride program in New York, that have been purchased with pretax dollars. And in areas where the service is paid for in cash, employees can have pretax deductions made and the cost reimbursed through TransitChek CashBack, our cash reimbursement program.