Commuter Assitance Programs

High gas prices pinch everyone’s wallet, especially when factoring in commuting to and from work. Even those that utilize mass transit still have commuting expenses that can add up over time. Under the Internal Revenue Service (IRS) Code Section 132, workers can set aside pre-tax dollars to use for work-related commuting purposes. This may include qualified parking costs, mass transit expenses or vanpooling expenses. These pre-tax dollars are exempt from federal income taxes, Social Security taxes and state income taxes (in most states). In some cases, employer groups pay for all or some of the participating employees’ costs.