|
|
What if there were a benefit out there that could, for little or no cost:
- Provide tax savings for Employers
- Serve as a unique recruiting tool
- Improve morale and reduce absenteeism
- Provide tax savings for Employees
- Reduce employee commuting costs
- Increase free time and productivity
- Deliver CTA Transit Cards and RTA FareChecks directly to your company
Now there is!
For more information, download a complete Implementation Kit and Transit Benefit Order Form
in PDF format, call the Transit Benefit HOTLINE at 312-681-3093.
|
| The Tax Benefits: |
|
The RTA/CTA Transit Benefit Fare Program allows your company and its employees to take
advantage of tax law changes to reduce commuting costs. Transit Benefit is a low-
or no-cost benefit for both employees and the bottom line.
The program is based on a federal tax law designed to encourage the use of public
transit. An amendment enacted under the Transportation Equity Act for the 21st Century
(TEA-21) expanded the definition of the Qualified Transportation Fringe provision of
the Internal Revenue Code, Section 132 (f). This allows employees to pay for transit
using pre-tax income - up to $115 per month ($1,380/year).
Employers have the option of subsidizing employees' transit costs at a level of their
choice or not at all. The outcome is a reduction of taxes for employees and employers,
regardless of the level of subsidization by the employer.
Whether using employees' pre-tax income, an employer subsidy, or a combination of both,
the RTA/CTA Transit Benefit Fare Program allows employers to purchase various types of fare
media that can be used by employees during their commute to and from work. Regardless
of which part of the RTA system is used - CTA, Metra, Pace, south Shore Railroad or van
pools-the RTA/CTA Transit Benefit Fare Program has an option for everyone.
Tax Advantages of Transit Benefit **:
| EMPLOYEE COSTS | AMOUNT |
| Annual Transit Set-Aside | $1380.00 |
| Federal Income Tax Saved | ($386.40) |
| Employee FICA 7.65% Saved | ($105.51) |
| State Income Tax Saved | ($41.40) |
| TOTAL COST FOR $1380 IN TRANSIT | $846.63 |
| TOTAL SAVINGS TO EMPLOYEE | $533.37 |
| EMPLOYER COSTS | AMOUNT |
| Initial Order Payment | ($1380.00) |
| Employee’s Pre-Tax Salary Deduction | $1380.00 |
| Actual Cost to Employer | $0.00 |
| Employer FICA 7.65% Saved | $105.57 |
| Employer Unemployment Tax Saved | $11.04 |
| NET SAVINGS TO EMPLOYER | $116.61 |
** Assumes employee pays 28% in federal income tax, 3% in state income tax, and 7.65% FICA and sets
aside the maximum ($1380 or $115/month) and assumes employer pays 7.65% FICA and 0.8% in FUTA tax.
|
|
| Additional Benefits: |
|
For the Employer:
- Reduced Absenteeism
- Increased Productivity & Morale
- Use of a unique recruiting tool
- Positive Environmental Impact
For the Employee:
- Increased Free Time
- Reduced Car Costs (gas, wear & tear, mileage, etc.)
- Positive Environmental Impact
|
| Transit Benefit Choice: |
|
Transit Benefit is flexible, offering a number of options and possibilities that can be
used in combination as needed in order to best serve your company’s unique transit needs.
Chicago Card Plus®:
- Online fare reloading -Pre-tax payroll deductions are posted to employees'
online accounts each month when their employer submits an online order form.
- Two fare choices -Choose between Pay-Per-Use fare payment, where full fares
and transfers are deducted from the online account each time the card is used, or
30-Day Passes, which provide unlimited rides for 30 consecutive days beginning with
the first ride taken using Chicago Card Plus.
- Fare Bonus -All Pay-Per-Use customers will earn a $2 bonus for every $20 of added
value. Chicago Card and Chicago Card Plus will be the only
fare payment options that provide this bonus.
- Quicker Boarding -To board a bus or enter through a rail station turnstile, simply
touch Chicago Card Plus to the touchpad on the front of rail station turnstiles and bus
fareboxes on all CTA and Pace buses.
- Protected Fares -If a Chicago Card Plus is lost, stolen or damaged, the cardholder
may log on to his or her online account or call the CTA to report the problem. A replacement
card will be issued and the balance in the account at the time that the CTA was notified of
the theft or loss will be available to the cardholder. Replacement cards cost $5.
- Account Management -Fare transactions can be viewed for each card in an account, and
personal information can be changed by visiting www.chicago-card.com or by calling CTA
Customer Service at 1-888-YOUR-CTA (1-888-968-7282), Monday to Friday, 7 a.m. to 8 p.m.
Click here to learn more about Chicago Card Plus and the Transit Benefit Fare Program.
CTA Transit Cards:
- CTA Transit Cards carry value and automatically deduct fares and transfers
- Transit Cards can be used on CTA trains and buses and Pace suburban bus routes
- Employees can order Transit Cards in values of $30, $35, $50 and $60, as well as the $75 30-Day Pass.
The $75 30-Day Pass allows
for unlimited rides for 30 days from the first time the card is used.
- Eligible employees can purchase a 30-Day Reduced Fare Pass ($35-unlimited rides, valid only with RTA ID for
seniors and riders with disabilities)
RTA FareChecks:
- RTA FareChecks are good where fares or passes are sold (except for CTA vending machines in rail stations) for
rides on any part of the regional system (CTA, Metra, Pace, South Shore Railroad or vanpools).
- FareChecks can be used on their own or in combination with cash or other instruments in order to pay for CTA,
Metra, Pace, South Shore Railroad or vanpools.
- FareChecks can be ordered in any denomination from $10 to $115, offering the flexibility that you, and your
transit-riding employees require.
- FareChecks are protected from forgery with state-of-the-art technology and are good for thirteen months,
meaning your company can make multiple-month orders easily and confidently.
- There is a small per check processing fee for FareChecks.
|
