What is Ride-and-Save?
Ride-and-Save is a commuter benefit program to help business commuters save money when they use an alternative mode of transportation to and from work.
Employees are eligible to be subsidized for their transit costs, or they can set aside up to $260 a month of their pre-tax income towards various commuting costs. Benefit options include:
Option #1 - Employer Paid Benefit
- Employers can pay for their employees to commute on BCT by purchasing a 31-Day bus pass. Employers get a tax deduction for the expense.
Option #2 - Employee Paid Benefit
- Employees pay for a BCT 31-Day bus pass with their existing gross income when their employer provides a pre-tax deduction program for their transit costs.
Option #3 - Fare Share Benefit
- Employers can provide a portion of the cost of a BCT 31-Day bus pass. The employee also pays a portion using pre-tax income when the employer offers a pre-tax deduction program.
Employers who are participating in Ride-and-Save have found the program to be beneficial, not only to attract new employees, but also to retain them, develop a stronger workforce, and assist those employees with transportation challenges.
The Transportation Equity Act (TEA-21), established in 1998, amended the federal tax code to create financial incentives relating to commuter benefits for employers and employees. More information about this program can be found under Section 132(f), Qualified Transportation Fringe Benefits.