MONTHLY COMMUTER BENEFIT LIMITS INCREASE STARTING JANUARY 1, 2009
23 Oct 2008
by:
Watertown, MA - October 23, 2008 - The IRS has approved an increase in the monthly maximum allowable taxfree
amount toward commuter benefits. Starting January 1, 2009, the new monthly maximums allowed for transit and
vanpool costs will be $120.00 and $230.00 for qualified commuter parking.
In addition Congress recently passed the Bike Commuter Act (H.R. 1498) which aims to balance the incentive
structure established in IRS Code 132(f) to include “bicycles” in the definition of transportation covered by qualified
transportation fringe benefit. It provides a strong incentive for employees to bike to work, which is a cleaner, healthier,
more efficient mode of transportation. The maximum allowable tax-free amount for biking to work will be $20.00 per
month for a total of $240.00 per year which can be spent on qualified bicycle commuting expenses.
“The bicycle benefit is a tremendous step forward for commuters who wish to reduce their carbon footprint
to zero during their commute and save a little money in the process....Accor will be lauching the Commuter
Check for Bicycling prepaid debit card on February 1, 2009. the card will be usable in bicycle shops
nationwide for qualified bicycle commuting costs.” - Gerard Bridi, President, Accor Services USA
About Tax-Free Commuter BenefitsSince 1993, employers have been able to offer employees a tax-free benefit for commuting by transit and eligible
vanpools or to pay for commuter parking under IRS tax code section 132(f). Tax-free commuter benefits can be
structured as an employee-funded pre-tax payroll deduction; as an employer-funded benefit; or the costs can be
shared by employer and employee. The benefit can be delivered in the form of transit provider-specific passes,
universally accepted vouchers and terminal– restricted debit cards, or through a reimbursement model under specific
conditions defined by the IRS.
About Accor Services USAAccor Services USA is a leader in innovative employee benefits solutions and premier provider of national commuter
benefit programs: Commuter Check Benefit Solutions, a nationwide transit and parking voucher program; and
WiredCommute, a program for private labeled commuter benefits administration. Our mission is to make tax-free
commuter benefits a staple in employee benefits packages throughout the American workplace – while helping
protect the environment.
About AccorAccor, the European leader and a major global group in hotels, the global leader in services to corporate clients and
public institutions, operates in nearly 100 countries with 170,000 employees. It offers to its clients over 40 years of
expertise in its two core businesses:
- Hotels, with the Sofitel, Pullman, Novotel, Mercure, Suitehotel, Ibis, All Seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing more than 4,000 hotels and nearly 500,000 rooms in 90 countries, as well asstrategically related activities, such as Lenôtre.
- Services, with 23 million people in nearly 40 countries benefitting from Accor Services products in human