Dr. Friday explains how employer-provided commuting benefits like transit passes and workplace parking can be tax-free. She notes that inflation adjustments may raise the monthly limits and that small businesses can use these perks to help employees.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Qualified transportation fringe benefits, including mass transit passes and workplace parking allowances, continue to offer tax-free benefits to employees when offered by an employer. For 2025, inflation adjustments may increase monthly limits, providing greater tax savings for commuters.
Employers offer these benefits mostly to upgrade the payroll system and help benefit their employees. This is a great way.
If you’re a small business owner and people have to pay for parking or they have to pay to come in and they’re willing to use transit, you can give them those passes for nothing, and that actually increases their payroll. If you need help, give us a call, 615-367-0819.
You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.