Tax Savings Make a Big Difference

1
Commute Benefits Provide More for LessTax
Savings make a Difference
50 salary increase
Writes off expense for corporate income taxes
(40, federal and state)
pays FICA (7.65)
Employer Cost
34
- 20
4
pays federal income tax (28)
pays state income tax (6)
pays FICA (7.65)
Employee value
29
- 4
- 14
- 3

• 50 transit/vanpool benefit

Writes off expense for corporate income taxes
(40, federal state)
Employer Cost
30
No FICA
- 20
Employee value
No state income taxes
50
No federal income taxes
No FICA
2
Commute Benefits Provide More for LessTax
Savings make a Difference
Employer cost 30
Employee takes home full 50 value
Employer cost 34
Employee takes home only 29 after taxes
50
Corporate income tax deduction
Corporate income tax deduction
Employee income taxes employee-paid FICA
Employer -paid FICA
No taxes paid on benefit
50 salary increase

• 50 transit/ vanpool benefit

3
Tremendous Value for Investment
125
For employees who switch from driving, gasoline
savings alone 40 per month
50 tax-free provides the same value to employees
as 85 in taxable salary
savings from other vehicle expenses could be
another 120 per month
Employer cost 30
Employee takes home full 50 value
Corporate income tax deduction
No taxes paid on benefit