Tax Benefits

• Employers may provide up to $115 a month to their employees as a tax-free benefit to commute by transit or vanpool.
• Employers may pay the commuting cost or allow employees to use their own salary on a pre-tax basis to purchase transit or vanpool services.
• Wageworks and Commuter Checks are two popular programs used by Rhode Island employers to offer these benefits.
• Talk to your employer and see if these benefit programs are already in place.
• For more information, or to discuss introducing this type of program at your workplace, call a Commuter Resource RI customer service representative at 1-888-88RIPTA.

Applicable IRS Code
Under current law, section 132 (f) of IRS Code, employers may provide employees with the following tax-free benefits:

• Up to $115 a month, $1320 a year, for transit or vanpool commuting expenses, and/or up to $175 a month for parking expenses.
• Transit and vanpool benefits must be provided in addition to compensation. Employees may not choose between receiving either benefit or salary.