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Commuter Choice refers to Internal Revenue Code [(26 USC 132(f)] which permits employers to offer a tax-free benefit to commute to work by methods other than driving alone.

This benefit can be realized by an employer providing the following Metro fare options to its staff.

Metro Fare options

  • Commute Card (unlimited ride pass billed to business monthly)
  • Paratransit Convenience Tickets ($19.50 – 6-ticket booklet)

How to use commuter choice

  1. Providing the pass or card free to employees. The employer pays Metro for the cost of the pass/card and receives the tax benefit at the end of the year.

  2. Offering the pass/card for purchase to employees on a pre-tax basis through payroll deduction. The employee then has the option of purchasing a pass/card through its employer on the discounted pre-tax rate.

  3. Both employer and share the cost and subsequent benefit/savings. A combination of the employer providing some of the cost of the pass/card to its employees with the remainder being paid by the employee pre-tax through payroll deduction.

How to Get Passes & 10-Ride Cards

More Information

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