Commute Benefits Provide More for Less:
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Commute Benefits Provide More for Less: Tax Savings make a Difference PowerPoint PPT Presentation


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Commute Benefits Provide More for Less: Tax Savings make a Difference. $50 salary increase:. Writes off expense for corporate income taxes (40%, federal and state). pays FICA (7.65%). Employer Cost. $34. + $4. - $20. pays FICA (7.65%). pays federal income tax (28%). pays state

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Commute Benefits Provide More for Less: Tax Savings make a Difference

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Commute benefits provide more for less tax savings make a difference

Commute Benefits Provide More for Less:Tax Savings make a Difference

$50 salary increase:

Writes off expense for corporate income taxes (40%, federal and state)

pays FICA

(7.65%)

Employer

Cost

  • $34

+ $4

- $20

pays FICA

(7.65%)

pays federal

income tax (28%)

pays state

income tax (6%)

Employee

value

  • $29

- $4

- $14

- $3

$50 transit/vanpool benefit:

Writes off expense for corporate income taxes (40%, federal + state)

Employer

Cost

No FICA

  • $30

- $20

Employee

value

No state

income taxes

No federal

income taxes

  • $50

No FICA


Commute benefits provide more for less tax savings make a difference

Commute Benefits Provide More for Less:Tax Savings make a Difference

Employer

cost =

$34

Employee takes

home only

$29 after taxes

Employer

cost =

$30

Employee takes

home full

$50 value

$50 transit/ vanpool benefit

$50

Corporate income tax deduction

Corporate income tax deduction

Employee income taxes + employee-paid FICA

Employer -paid FICA

No taxes paid on benefit

$50 salary

increase


Tremendous value for investment

Tremendous Value for Investment

$125

For employees who switch from driving, gasoline savings alone = $40 per month

$50 tax-free provides the same value to employees as $85 in taxable salary

+

savings from other vehicle expenses could be another $120 per month

Employer

cost =

$30

Employee takes

home full

$50 value

Corporate income tax deduction

No taxes paid on benefit


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