Press Releases

For Immediate Release

TRANSIT/VANPOOL RIDERS NOW CAN SAVE UP TO $480 PER YEAR WITH COMMUTER CHECK®

Tax-free Monthly Benefit Increases From $65 to $100

Due to changes in federal law taking effect January 1, 2002, commuters can now save up to $480 annually through the Commuter Check® transit voucher program. Employers save more on payroll taxes as well -- up to $120 per employee.

Beginning January 1, the maximum benefit for tax-free transit rises from $65 to $100 per month. Commuter Check® is a "Qualified Transportation Fringe Benefit" under IRS Section 132(f). Previously, the law allowed employers to give employees up to $780 per year in Commuter Checks as a pre-tax payroll deduction or a tax-free employee benefit. The increase in the monthly cap to $100 allows employers to give employees up to $1,200 per year as a tax-free benefit and increases their annual per employee savings to about $120. (The estimated $480 in annual tax savings enjoyed by the average employee assumes that the $1,200 being directed to the Commuter Check® program would otherwise have been taxed at the going rate of around 40 percent.)

"After informing our employees about the new cap, people in the office were very excited, frankly. We think it's wonderful and only wished the cap was raised sooner," said Ruth Soderback of Trinity Capital Corporation in San Francisco. "The news is especially exciting for those who commute from the East Bay and the Peninsula. It's a huge savings for them. Commuter Check® allows us to help reduce emissions and assists in saving our environment."

Commuter Check® vouchers can be redeemed for transit passes, tickets and tokens and are accepted by all transit operators throughout the Bay Area, as well as vanpools. About 80,000 commuters currently receive Commuter Checks® at more than 3,200 Bay Area employers.

Commuter Check is a national program that is sponsored in the Bay Area by MTC in conjunction with RIDES for Bay Area Commuters. For more information about Commuter Check call 800/559-7909, or visit www.commutercheck.com.

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