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RTA Transit Benefit Fare Program
The RTA Transit Benefit Fare Program helps employees and employers save money on transit. IRS Section 132(f) allows for employees to have up to $245 a month deducted pre-tax to pay for transit or vanpool commuting expenses. Below is an example of the savings.
|
Pre-Tax Benefit
|
Monthly income without
pre-tax Benefit* |
|
|
|
Monthly income with
pre-tax Benefit* |
| Monthly Gross Salary |
$4,000 |
|
|
Monthly Gross Salary |
$4,000 |
| Federal Taxes |
($1,120) |
|
|
Transit Fare** |
($245) |
| FICA |
($306) |
|
|
Pre-Tax Income |
$3,755 |
| State Tax |
($200) |
|
|
Federal Taxes |
($1,051) |
| Post Tax Income |
$2,374 |
|
|
FICA |
($287) |
| Transit Fare** |
($245) |
|
|
State Tax |
($188) |
| After Tax & Transit |
$2,129 |
|
|
After Tax & Transit |
$2,229 |
Savings of $100 each month
$100 x 12 months = $1,200 in Annual Savings
Would you like to learn how to enroll in the program? Visit
www.lesstaxingcommute.com
 The Transit Benefit Program is offered by the RTA and
provides savings on the following providers:
   
  
* Assumes employee is included in 28% federal income tax bracket, 5% in state income tax and 7.65% FICA
** Assumes employee uses maximum benefit each month
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Transit Benefit Program
