Category Archives: DeduCT-a-Ride

Calculate the Savings for DeduCT-a-Ride

If your employer offers DeduCT-a-Ride, you may choose to use pre-tax income to pay for transit and vanpool fares and parking costs. As of January 2006, you can use up to $105 per month for transit and vanpool fares and/or up to $205 per month for qualified parking.

To estimate your savings with DeduCT-a-Ride, just use the commuter calculator below:

  1. Calculate your total tax rate. This involves three steps.
    1. Choose your federal tax rate. Most people fall into the 25% category. The federal tax rates are as follows: 10%, 15%, 25%, 28%, 33%, 35%.
    2. Find you state tax rate. If you live in Connecticut, this rate is 4.5%.
    3. To calculate your total tax rate, add up your federal tax rate (as a decimal), your state tax rate (as a decimal), and FICA (which is .0765).

    For example, as a typical Connecticut resident your total tax rate would be:

    .25 (federal) + .045 (state) + .0765 (FICA) = .3715

  2. Calculate your monthly transit expenses. You can set aside up to $105/month in transit costs.
  3. Calculate your monthly parking expenses. You can set aside up to $205/month in parking costs.
  4. commuter tax savings = (total tax rate × 12 × (monthly transit expenses + monthly parking expenses))

For example, if I am a typical Connecticut resident, with monthly transit expenses of $52 and monthly parking expenses of $75, my commuter tax savings would be:

= (.3715 × 12 × (52 + 75))
= (.3715 × 12 × 127)
=
$566.17 savings per year

Benefits for Employers

The benefits of DeduCT-a-Ride in your workplace are tremendous. Not only will you lower your employees’ taxable income and save on payroll taxes, you will also:

  1. Improve employee productivity and morale by reducing the stress of driving.
  2. Reduce employee tardiness.
  3. Improve your ability to recruit and retain quality employees.
  4. Provide a high value/low cost competitive employee benefit already in place at scores of companies.

Participating Companies
A.T. Clayton
AIFS
Aladdin Capital
AOL Time Warner
Aon
ASML
Banta Direct
Berkshire Hathaway
Betteridge
Bridgeport Hospital
Bridgeport Neighborhood Fund
Bruce Museum
Cacace, Tusch & Santagata
Cartesis
Cendant (Danbury)
Cendant(Norwalk)
Circulation Specialists
Community Foundation of GNH
Cornerstone Bank
CT Surety Group
Cummings & Lockwood
Darien Chamber
Daymon Assocs.
Deloitte & Touche
Directorship (NY & CT)
Easton Consultants
Efficiency
Electric Boat
Elm Electric
Environics
Ernst & Young(Wage Works)
Executive Greetings
Executive Risk
F.B.I
Ferguson Library
Fuji Medical
GECC(Wage Works)
GECC(Danbury)
Greenwich Bd. Of Educ.
Hartford Chamber
Hartford Office
Hewitt Associates
Hexcel
Halloran & Sage
Hewitt Associates

Hospital of Saint Raphael
Howard Systems
i3 Mobile
Insight Inc.
Inventive.com
KPMG(National)
Lexus
LifeCodes
Maritime Center
Merrill Lynch
Modem Media
Nathaniel Witherall
New England Controls
New Haven Savings
News America
Norwalk Housing Auth.
Ohlandt
Oxford Health Plans
PanAm Sat
Perkin-Elmer
Pfizer
Phoenix Home Life
Pitney Bowes(Wage Works)
Propeller Works

Qualedi
Quartararo & Assocs.
RBC Heim Bearing
Rideworks
Sempra
St. Luke’s
Shelter for the Homeless
Smithsonian Institution(6,000-1%)
SNET
Stamford Health Systems

Stirling & Stirling
SVG(Wilton)
Synergy Corp Tech.
Temps New England
Temps Now
The Green at Cannondale
The Hassel Group
The Media Service Group
The Willard Shullman Group
Tiffany
Town of Greenwich
Travelers Insurance
Urbitran Associates
United Illuminating(NH)
US Compter Connection
VA Connecticut Healthcare System
Wadsworth Athenum
Westport Bd of Education
Wiggin & Dana
Yale-New Haven Hospital
Yale Medical School
Yale University

DeduCT-a-Ride for Employers

Increase your employees’ take-home pay without increasing your payroll!

As of January 2006, federal law allows your employees to use up to $105 per month ($1260 per year) of their pre-tax income to pay for commuting on public transit and in eligible vanpools plus up to $205 per month ($2460 per year) for qualified parking. You save on your payroll taxes and your employees lower their taxable income… it’s a win-win!

You can also “share the fare” and contribute all or a portion of your employees’ monthly fare, up to $105 per month. Employees can deduct their own pre-tax income to pay any difference in their commute costs. Note: the total amount set aside per employee cannot exceed the actual cost of the employee’s commute.

The Connecticut Department of Transportation provides complete support through the state’s three ridesharing organizations: MetroPool (Fairfield County), the Rideshare Company (greater Hartford and southeastern CT) and Rideworks (greater New Haven and greater Waterbury). These services include

  1. Consultation and on-site training.
  2. Development of the program.
  3. Marketing support, on-site promotion and employee enrollment.
  4. Program tracking and maintenance.
  5. Ongoing marketing.

How does DecuCT-a-Ride work?

Once your employer makes the necessary adjustments in the payroll system, you may enroll by authorizing a payroll adjustment in the amount you intend to use for transit/vanpools and/or parking per month. In return, you will receive transit fare media, vouchers (TransitChek) or, in some cases, cash reimbursement after submitting proof of transit or vanpool use (ticket, pass, receipt.) Parking costs are reimbursed in cash, with a receipt.