Content about Charles E. Schumer

January 10, 2014

The maximum allowed pretax mass-transit benefit for employees fell from $245 per month in 2013 to $130 in 2014, beginning Jan. 1.

Employees can deduct commuting costs from their paychecks, tax free, through an employer benefit program up to the allowable monthly limit. Similarly, organizations that subsidize their employees’ commuting costs may do so up to the allowable limit, which results in lower payroll taxes than if they paid the money in wages.