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Commuters Save with TransitChek
When
your employer offers TransitChek through pre-tax payroll
deductions, you can set aside up to $115 a month in pre-tax
dollars to pay for your commute on transit or vanpools.
That means you won’t pay federal income taxes or
FICA taxes on these dollars. The table below gives you
an idea of how much you can save in taxes each year by
taking advantage of the $115 per month maximum pre-tax
payroll deduction. Use the savings calculator below to
find out how much you’ll save based on your specific
commuting costs and federal tax bracket.
If you are an
employer, find out how much your organization can save
with TransitChek by calling 215.592.1800.
Locate your
tax bracket in the chart:
2008 Federal Tax Bracket |
Married (from - to) |
Single (from - to) |
10% |
Under $16,050 |
Under $8,025 |
15% |
$16,050 - $65,100 |
$8,025 - $32,550 |
25% (most common) |
$65,100 - $131,450 |
$32,550 - $78,850 |
28% |
$131,450 - $200,300 |
$78,850 - $164,550 |
33% |
$200,300 - $357,700 |
$164,550 - $357,700 |
35% |
$357,700 + |
$357,700 + |
ANNUAL
SAVINGS |
Federal Income Tax Bracket |
10% |
15% |
25% |
28% |
33% |
35% |
Federal Income Tax Saved |
$138 |
$207 |
$345 |
$386 |
$455 |
$483 |
FICA Savings
(Social Security + Medicare)
|
Social Security* |
$85 |
$85 |
$85 |
$0 |
$0 |
$0 |
Medicare |
$19 |
$19 |
$19 |
$19 |
$19 |
$19 |
Total Annual Employee Savings |
$242 |
$311 |
$449 |
$405 |
$474 |
$502 |
Percent Saved |
17.5% |
22.5% |
32.5% |
29.3% |
34.3% |
36.4% |
The savings from different benefit levels can be calculated
proportionally. In specific situations, further savings
may result from other salary-linked costs such as unemployment,
disability, retirement, workers compensation, or wage
taxes. *The Social Security tax limit (6.2% up to $97,500
for 2008) also rises annually. Medicare is 1.45% with
no limit. TransitChek-related tax savings for Social
Security applies to employees earning up to $97,500 annually.
Consult your tax advisor for specific advice.
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