Commuter Checks: Tax-free Payment for Mass Transit


Save Money While You Save the Environment

  • P.A.C.E. Proudly Announces Its Enrollment in Commuter Checks

    • Employees who commute from their residence to their worksite using qualified mass transit may purchase commuter checks tax-free through their division.

    • This innovative service is available in the following states and/or metropolitan areas*:

      • California
        -- Sacramento Metropolitan Area
        -- San Francisco Bay Area

      • Colorado
        -- Denver Metropolitan Area

      • Idaho
        -- Various transit agencies

      • Kentucky
        -- Louisville Metropolitan Area

      • Massachusetts
        -- Boston Metropolitan Area

      • Minnesota
        -- Various transit agencies

      • New York
        -- Buffalo Metropolitan Area

      • Ohio
        -- Various transit agencies

      • Rhode Island
        -- Various transit agencies

      • Virginia
        -- Various transit agencies

    • Additional areas may be covered - Visit the Commuter Check Web site for a complete list of participating agencies.

    • This IRS approved program will be offered 3 times a year to P.A.C.E. employees who commute on any participating transit system.

       

  • What are Commuter Checks?

    • Commuter Checks are used to purchase tickets, tokens and passes for public transit services and can be used for participating vanpools and private transportation providers.

    • For more information on what agencies are participating with Commuter checks, and how to use Commuter Checks, please go to:
      http://www.commutercheck.com/employer/usingCC.html
      and click on the geographic area you are interested in.

     

  • What do you mean by "tax free"?

    • When your division of P.A.C.E. purchases the Commuter Checks, the payment is not subject to:

    Employer Taxes
    Employee Taxes

    Social Security
    (6.2%)

    Social Security
    (6.2%)

    Medicare
    (1.45%)

    Medicare
    (1.45%)

    Federal Unemployment
    (0.8%)

    Additional State Taxes
    (% varies by state)

    State Unemployment
    (% varies by state)

    State Income tax
    (varies)

    Workers Compensation
    (% varies)

    Federal Income tax
    (varies)

    Additional State Taxes
    (%varies)

     
    • Depending on your tax situation, purchasing $1,260 per year in Commuter Checks through your P.A.C.E. division can save you upwards of $800/year in taxes!

     

  • What are the rules?

    • The program is effective 5/1/04 and is not retroactive.

    • If you stop using mass transit, you must notify P.A.C.E. immediately.

    • Commuter Checks will be distributed 3 times a year, with enough time to purchase transit passes for the next month. For example, June/July/August/September Commuter Checks will be distributed prior to the end of May.

    • You do not receive cash back for the difference when redeeming Commuter Checks.

    • You may not sell/barter/or trade your Commuter Checks.

    • All Commuter Checks orders are final.

    • Employees can order up to $105 per month ($1,260 per year) in Commuter Checks

    •  

  • This sounds great - how do I participate in this tax-free program?

    • P.A.C.E. will send out a notice to all P.A.C.E. employees requesting that interested employees contact P.A.C.E. for an order packet for their particular city/state.

    • The appropriate order form will be e-mailed to you to fill out and return to P.A.C.E. Once we have the order forms, we will deduct the order amount from your division, and order the Commuter Checks for you. When we receive them, they will be mailed to the address you give us on the order form. We will process the orders as quickly as possible, however, please allow 4 weeks from order date to delivery at your mailbox.

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