The IRS just gave the green light to boost the fringe benefit limit for transit and parking to $315 per month in 2024!  Let's see how this update is going to make the daily commute a bit lighter on the wallet for employees and employers.

What Is Section 132(f)?

Section 132(f) of the IRS tax code allows us to use pre-tax dollars for transit passes and parking fees, making the journey to work more budget-friendly. Now, the IRS is raising the limit to $315 per month in 2024, from $300 in 2023, to account for inflation and increased commuting costs.

For Employees: More Money in Your Pocket

For employees, the benefit limit increase means converting commuting expenses into savings on taxes. By using pre-tax income for your commute expenses, you have lower taxable income. Lower taxable income means more money in your pocket. And with the limit now at $315, it's like an extra boost for your commuting budget.

For Employers: Less in Payroll Taxes

To the admins out there–supporting commuter benefits isn't just a nice thing to do. It's also a smart move. Lower taxable income for your team translates to less spent on payroll taxes. It's a win-win situation! Plus, happy employees make for a positive workplace.

What’s Next?

So, how do we make this happen? Employers, make sure to chat with your commuter benefits provider and ensure you are in compliance with the new $315 limit. Already working with Jawnt? Your account manager will have already reached out to help get the relevant changes for your payroll in place. 💫

Let's Ride Together in 2024!

The IRS increasing the benefit limit means our daily travels are easier on the wallet. This increase in the fringe benefit limit is a nod to the fact that commuting can be pricey – and who doesn't want to save a little extra? Whether you're an employee looking to boost your budget or an employer ready to offer financial perks, let's ride into 2024 together!

Happy commuting, everyone!

Want to learn more about how Jawnt can help employees and organizations save money on their commute? Get in touch with our team.