OAKLAND, Calif., March 18, 2002
With April 15th approaching, many people feeling the annual sting of a tax deadline are taking steps to grab an added deduction or vowing to put more time to record keeping next year. Most tax-saving measures put into effect now will only reap benefits next year, but here’s an idea that takes no time to set-up or maintain, and provides immediate savings to taxpayers and their employers.

The Commuter Check transit benefit program is one of the easiest ways to save up to $480 in taxes annually. Employees can now dedicate up to $100 each month of pre-tax salary to transit fares, reducing taxable salary and automatically saving money without the hassle of filing tax forms or collecting receipts. Commuter Check tax savings are received in every paycheck.

"Transit benefits are rapidly becoming very common nationwide, with over one million employees now receiving them," said Richard Oram, President of Commuter Check Services Corp. of Englewood NJ. "In the Bay Area, Commuter Check is especially popular because the region’s strong environmental consciousness adds to the substantial tax benefits the program provides. To cut taxes, people should consider Commuter Check because it’s perhaps the simplest way to save," added Oram. "Transit riders can also take advantage of added free time, to reconcile their checkbook or read a tax-saving guide. The Commuter Check tax-saver is a time-saver, too."

Signing up for the Commuter Check program saves employers and employees money throughout the year, and since a recent expansion of the program took effect, enrollment is soaring. In January 2002, a tax law change raised the tax-free maximum that employees can receive for transit from $65 to $100 a month (from $780 to $1200 annually). Over 3,400 Bay Area employers of all sizes and types have purchased Commuter Checks since the program began in the Bay Area in 1991, and nearly 80,000 Bay Area employees now receive them. Since January, over 150 new employers have enrolled, and enrollment in March set a record.

Tax-free Commuter Checks are provided in one of three ways: 1) employee-paid, as a pre-tax payroll deduction; 2) employer-paid, as a cost-effective employee benefit, incentive or bonus, or 3) "share the fare," with part paid by the employer and part paid by employees.

Under the pre-tax option, employees generally save over 40 percent of the amount received in Commuter Checks, while employers save 9 percent in payroll taxes for each participating employee (about $110 per employee per year). Under the employer-paid benefit option, which is similar to company-provided parking, the maximum annual benefit of $1,200 in Commuter Checks has the same after-tax value as $2,000 in salary, which when employer payroll taxes are included actually costs nearly $2,200 for an employer to provide.

In its tax-tips newsletter, Bay Area CPA firm Boas and Boas declared, "It’s more tax-effective for companies to give employees Commuter Checks than salary." Small business consultant and CPA Phillip J. Messing agreed, "There’s no easier way for an employer to give its employees an immediate and substantial tax-break it’s a no-brainer."

"From the employer’s point-of-view, Commuter Checks are a no-cost item, in fact, they’re a cost-saver," said Everett P. Harry, CPA, principal of his own Bay Area-based accounting firm. "Ours is a small office and I still save money; a bigger firm can save quite a bit of money. In addition to financial benefits, there are the social and environmental benefits of getting people out of their cars."

Commuter Check vouchers are redeemed for transit fares for 29 transit operators throughout the Bay Area and adjacent communities, and are accepted at hundreds of sales outlets. They are also used to pay vanpool fares.

For information on Commuter Check, call (800) 559-7909.

About Commuter Check
Commuter Check Services Corp., based in Englewood, New Jersey, is committed to making employer-provided transit fare subsidies a widespread employee benefit by providing cost-effective services, working in close partnership with local public agencies, and providing a high level of service to employers who purchase Commuter Checks. Commuter Checks are vouchers redeemed for public transit fares, and are sold to employers for use as a tax-free employee benefit, bonus or substitute for taxable salary. Commuter Check was formed in 1990 to operate transit discount programs in coordination with local public transit operators, metropolitan planning agencies and State transportation departments. In addition to the Bay Area, Commuter Check also serves Philadelphia, Boston, Minneapolis, Denver and other regions across the U.S.