We offer two pass programs for employers and employees to encourage the use of mass transportation to protect the environment and save money: The Federal Commuter Choice Program and the Michigan Flyer Pass Program for Employers.
Federal Commuter Choice Tax Benefit Program
Private employers, non-profit organizations and public agencies, federal government employees, and members of the military services are eligible to receive these transit commuter benefits. However, self-employed individuals, partners, 2-percent shareholders of S corporations, sole proprietors and other independent contractors are not eligible under IRS rules.
- Employer-Paid Transportation Benefits
The most attractive option to employees is for the employer to cover the full cost of the transit benefit up to $230 per month. The cost for the employer is tax-free and deductible as a business expense.
- Employee-Paid, Pre-Tax Transportation Benefits
Employers may permit their employees to have up to $230 per month deducted from their current monthly pay towards the actual cost of public transit before taxes are applied.
- “Fare Share” Shared Cost Transportation Benefits
Employers can share the cost of transit with employees, and everyone can receive valuable tax savings.
Benefits: Employers and employees save on federal taxes―a nice, affordable fringe benefit. Employees arrive at work relaxed and refreshed because they avoid the stress of rush-hour driving. Choosing public transit reduces carbon dioxide emissions, and makes companies more attractive as socially responsible employers.
[Footnote] * Section 132 in the Internal Revenue Code, Title 26 of the United States Code, as modified by the Taxpayer Relief Act of 1997 and the Transportation Equality Act for the 21st Century.
Michigan Flyer Pass Program for Employers
Any employer with 10 employees or more is eligible to participate in the Pass Program for Employers by entering into a monthly contract with Michigan Flyer and purchasing unlimited access passes for each employee at the rate of $350 per pass per month, depending on the boarding points and number of employees involved.