NYC Uber Riders Can Now Use Pre-Tax Dollars to Pay for Public Transportation The TurboTax Blog

The law does not require employers to use a third-party provider. For guidance on the federal tax code, please see the IRS Employer’s Tax Guide to Fringe Benefits. A commuter benefits program is a program that certain employers can offer under the provisions of Internal Revenue Code Section 132 to their full-time employees to use pre-tax income to cover certain transportation costs. Eligible prorated credits will be placed on the member’s WageWorks account to be used toward a future benefit month order once funds are received from the transit agency. Members with an April order will receive a credit on their account to use for a future benefit month once the funds are received from the transit agency. As Coach Company does not have a specific date they will resume services, please consider your needs for future benefit months and login to your account and update your election accordingly. As Bloom Bus does not have a specific date they will resume services, please consider your needs for future benefit months and login to your account and update your election accordingly.

Read below for specifics on commuter benefits and how they apply to Shared rides. Members will receive a credit for the October benefit month that can be used towards a future benefit month. For April passes that have uber pool wageworks not been activated, members had to onto them as they can be used for a future benefit month. For any passes that have not been activated, please hold on to them as they can be used for a future benefit month.

I used a tax ‘loophole’ to ride in a nearly empty Uber that the government treats like the subway

Do not forget to use our first ride promo codeto get the free ride free. For more savings take a look at our guide to iBotta. Carpool rates are calculated like other ride’s rates.

WageWorks works with approximately 58,000 employers in the U.S. to provide health savings accounts, flexible spending accounts, commuter benefits and more. Employees can save up to 40 percent on commuting costs when they contribute up to $255 per month in pre-tax income to a WageWorks Commuter Transit Account. To determine the number of hours worked each week, employers must add the number of hours worked by the employee in the most recent four weeks at all placements. WageWorks users who already save 40 percent on public transit via pre-tax funds can now do the same with the ride-hailing service. You can still apply any valid Lyft promo to your account, regardless if you’re using a commuter card.

Can I use commuter benefits for Uber?

A Commuter Benefit Card is a prepaid card that is linked to a Commuter Benefit Plan . The card allows a participant to access plan funds at the point-of-sale to pay for eligible workplace mass transit and/or parking expenses. To soften the blow to the bank accounts of harried commuters, Uber partnered with employee benefits administrator WageWorks in August to allow riders in New York City to pay for UberPool rides using pre-tax income. Uber and consumer benefits platform WageWorks have revealed a U.S.-wide expansion to a program that lets ride-sharing commuters pay using pretax dollars. Employers can save on payroll taxes when their employees use pre-tax income to pay for their commute. The more employees who sign up for transit benefits, the more the employer can save. However, DCA encourages employers to provide commuter benefits to part-time, temporary, and seasonal employees.

To check if your city offers Shared rides, refer to your Cities page. We currently do not offer commuter benefits for Shared Saver rides. Members with a May order will automatically receive a credit on their account that can be used towards a future benefit month. Members with a May to October order will receive https://turbo-tax.org/a a credit on their WageWorks account that can be used towards a future benefit month. To receive a credit on your account for use toward a future benefit month . For credit for the remaining value on the bus pass, which will be applied to your WageWorks account once the funds are received from the transit agency.

General Information on Commuter Benefits

Commuter benefits allow employers to support their employees when it comes to their daily commute. The benefits generally come in the form of a benefit card or a commuter check. The great advantage is that the transportation benefits are tax free up to a certain limit. You’ll need to contact your employer if you’re wanting more funds added to your commuter card. You can use up to $265 pre-tax dollars on Shared rides each month.

As Miami Dade Transit Agency does not have a specific date they will resume fare collection, please consider your needs for future benefit months and login to your account and update your election accordingly. As Kansas City Area Transportation Authority does not have a specific date they will resume fare collection, please consider your needs for future benefit months and login to your account and update your election accordingly. As Greater Richmond Transit Authority does not have a specific date they will resume fare collection, please consider your needs for future benefit months and login to your account and update your election accordingly.

III. DETERMINING NUMBER OF FULL-TIME EMPLOYEES

“I think they’re a direct challenge to our public transportation system,” Lucius Riccio, a transportation expert at Columbia University, told Business Insider. He was referring to Uber, as well as competitors like Lyft and another carpool service called Via.

• It’s a big step for a company that sees itself as more than a ride-hailing service and follows on the heels of the introduction of unlimited passes during the summer for rush hour rides in Manhattan.
• Your ETA may be longer than usual when requesting a Shared ride with commuter benefits since there are fewer cars with six or more seats on the road.
• Public transit riders — subways, buses, ferries, etc. — apply the pre-tax money to their commutes.
• Because a large number of returns were expected, members should allow 5-6 weeks for your credit to be processed to their Mail & Ride account.
• Stored value or pass election orders loaded to a member’s Ventra Card cannot be returned to WageWorks for a credit to the member’s account.

For your May order, you will automatically receive a credit on your account that can be used for a future benefit month. Niagara Frontier Transportation Authority suspended fare collection for the April to August benefit months. Please be sure you only return passes sent to you by WageWorks.