Commuter Choice Program

Commuter Choice: A Win-Win for Employers and the Environment

Commuter Choice is a smart benefit program that supports employees who choose transit or vanpooling instead of driving alone. Authorized under IRS Code 26 USC §132(f), it allows employers to offer tax-free commuter benefits, helping reduce traffic congestion, lower emissions, and support cleaner air.

By participating in Commuter Choice, employers can save on payroll taxes, boost employee satisfaction, and demonstrate environmental responsibility—all while offering a practical transportation benefit.

1. Employer-Paid Benefit
The employer covers the full cost of an employee’s transit or vanpool commute, up to the IRS monthly limit. It’s tax-free for employees and fully deductible for the employer.

2. Employee-Paid Pre-Tax Benefit
Employees use pre-tax income to purchase transit passes or vanpool vouchers. Employers save on payroll taxes, and the benefit can start any time of year.

3. Share-the-Fare
A cost-sharing model where both employer and employee contribute. Employers use a mix of company funds and employees’ pre-tax income to provide the benefit.

Tax Savings – Employees can pay for transit or vanpooling with pre-tax dollars—saving on income and payroll taxes. Employers also reduce payroll tax costs.

Talent Attraction & Retention – An affordable benefit that improves morale and enhances your competitive edge in hiring and retention.

Environmental Impact – Fewer solo drivers mean reduced traffic, lower emissions, and improved air quality in our region.

Ready to Get Started?

We can help you choose the best option for your organization and assist with implementation. Call us at (804) 643-7433 or contact us online.