Employer Transportation Programs
To contribute to the Greater New Orleans regions to combat climate change, employers can encourage their workforce to choose public transit to reduce dependency on single occupancy vehicles. With RTA’s employer transportation program, employers can purchase a 31-Day Jazzy Pass each month for their employees and will receive tax savings.
The IRS considers any funds allocated to commuter programs to be a pre-tax fringe benefit. As a result, your company does not have to pay payroll taxes on these funds. RTA’s employer program falls under the IRS’ Internal Revenue Code Section 132 and the Transportation Equity Act for the 21st Century. Your accountant can help you decide how to structure the program in a way that works best for your company.
If your company chooses to subsidize only a portion of the cost of employees’ monthly passes, employees can cover the balance with pre-tax dollars.
For more information or to inquire about how your company offer subsidized passes to employees, please email marcomm@rtaforward.org.