Transit reimbursement is often referred to as a “commuter benefit.”
Commuter benefits are a way to save money on eligible transit and parking expenses for an employee’s commute to and from work. Eligible commuting expenses are deducted from employee payroll on a pre-tax basis.
These tax-free deductions mean more money in the employee’s pocket. Eligible transit expenses may include metro and transit passes, token fare cards, vouchers or similar items to cover the cost of transportation by bus, train, subway, ferry or van-pool. Eligible parking expenses may include parking at or near an employee worksite where an employee commutes to work either by mass transit, qualifying commercial or noncommercial highway vehicle or car pool. Vendor parking can include lots and garages.