Link Transit has several programs set up to enable your employees to use public transit services and save money in the process.
Section 132(c) of the IRC allow up to $110 per month as a qualifed transportation fringe benefit. This can be set up one of two ways: the employer can pay for 100% of the cost of transit, or the employer and employee can share the cost. Or the employee can have the cost of their monthly transit pass deducted from their pre-tax income. There are tax benefits to either arrangement, please consult your tax advisor for specific information. More information on this IRC provision can be found in this publication.
- Employees purchase passes out of pocket and are reimbursed by employer (employee is responsible for maintaining proof of purchase)
- Employer sets up program with Link Transit to purchase passes on a monthly basis and distribute to employees. Passes will need to be ordered by the 20th of each month to insure delivery by the first of the month. Costs of passes shall not be discounted under this program, and the employer is responsible for payment of passes to Link Transit through an invoice system.
- Establish an eCO Pass program with the employer so all employees receive the transit benefit at a negotiated annual cost to the employer. The costs of this program are based on the number of employees from your organization that are currently riding transit.
What Can You Do As An Employee?
One of the most effective ways you as an employee to help move the implementation of any of these programs forward is to get all of your transit-riding co-workers to ask their supervisors or Human Resources Department about starting such a program. Internal demand is much more effective in getting your employer on-board with this program than any other tactic.