 |
Commuters Save with TransitChek
When
your employer offers TransitChek through pre-tax payroll
deductions, you can set aside up to $230 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 $230 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:
2010 Federal Tax Bracket |
Married (from - to) |
Single (from - to) |
10% |
Not over $16,750 |
Not over $8,375 |
15% |
$16,750 - $68,000 |
$8,375 - $34,000 |
25% (most common) |
$68,000 - $137,300 |
$34,000 - $82,400 |
28% |
$137,300 - $209,250 |
$82,400 - $171,850 |
33% |
$209,250 - $373,650 |
$171,850 - $373,650 |
35% |
$373,650+ |
$373,650+ |
ANNUAL
SAVINGS |
Federal Income Tax Bracket |
10% |
15% |
25% |
28% |
33% |
35% |
Federal Income Tax Saved |
$276 |
$414 |
$690 |
$773 |
$911 |
$966 |
Social Security* |
$171 |
$171 |
$171 |
$0 |
$0 |
$0 |
| Medicare |
$40 |
$40 |
$40 |
$40 |
$40 |
$40 |
Total Annual Employee Savings |
$484 |
$625 |
$901 |
$813 |
$951 |
$1,006 |
Percent Saved |
17.7% |
22.7% |
32.7% |
29.5% |
34.5% |
36.5% |
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, worker's compensation or wage taxes.
FICA taxes are 7.65%, a combination of Social Security and Medicare taxes.
*The Social Security tax limit (6.2% up to $106,800 for 2010) rises annually. Medicare is 1.45% with no limit.
This document does not constitute tax advice. Please consult a licensed accountant or tax attorney for specific advice.
|
|
