Tip of the Week: A Break on Commuting (11/23/98)

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	A Break on Commuting Financial Tip of the Week by Deloitte & Touche OnLine November 23, 1998

Employers can help their workers save on parking and travel costs.

Beginning in 1998, employers can offer employees the option of electing cash compensation in lieu of any qualified transportation benefit, or a combination of benefits, beginning in 1998.

Qualified transportation benefits include employer-provided transit passes, parking and vanpooling. Thus, no amount is includible in income or wages merely because the employee is offered the choice of cash, or merely because the employee is offered a choice among qualified transportation benefits.

Up to $175 per month (for 1998) of employer-provided parking and up to $65 per month (for 1998) of employer-provided transit and vanpool benefits are excludable from gross income.