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.

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