Commuter Benefit
The commuter benefits program enables eligible faculty and staff to purchase transit passes and commuter parking via payroll deduction, a portion of the overall cost is pre-tax thereby reducing their overall tax burden. To qualify for these benefits, the expenses must be employment-related and transacted via payroll deduction. The program is administered by HealthEquity/WageWorks.
How does the plan work?
Your employer deducts the cost of your transit or parking pass from your paycheck each month. The portion of your cost that is deducted pretax reduces the amount of earnings on which you have to pay taxes. This is how you save. If you choose Every Month frequency, you’ll automatically get the same order each month until you change or cancel it or become ineligible for this program. Place your order based on how you get to work and then we fulfill your order (mail you a pass, send in your payment, whatever’s appropriate for your situation) just prior to the beginning of the month.
The 2025 amounts are as follows: Up to $325 for transit and $325 for parking may be excluded from state and federal taxable income (pre-tax limits are subject to change annually).
Getting Started
The program makes it easy to save on taxes and enjoy convenient automatic payment and delivery options. This program has two components: pre-tax transit and pre-tax parking. You have several options for ordering your transit and/or parking online while continuing to save money with monthly pre-tax payroll deductions.
When and how can I enroll?
You can enroll anytime. There’s no need to wait until open enrollment as with other benefit plans. You can enroll, change or cancel your commuter benefits any month and any number of times during the year. New hires may need to wait until their second week of employment to access the HealthEquity site. This allows time for your eligibility information to be updated in their system.
To enroll, Log In to HealthEquity/Wageworks and simply select the Place Commuter Order button from the navigation bar. Follow the instructions on each page. The deadline for your particular order determines when your benefit will take effect.
What does Pretax mean?
It means that your cost for parking – up to $325 a month – is deducted from your paycheck before federal, state and FICA taxes are applied*. This lowers your “taxable” income and you automatically pay fewer taxes. Any additional amount is deducted after tax.
*State taxes apply in some states and FICA limits apply. Check with your tax advisor for details.