Employer sponsored pre-tax programs can help their employees save on commuter parking by using tax-free money.
SP+ can help deliver this advantage to Harrisburg businesses through its partnership with the industry leaders in pre-tax commuter programs.
Federal Law allows employees to reduce their commuting costs by up to 40% by paying for monthly or daily parking with pre-tax dollars. Companies can also save as payroll taxes are not paid on pre-tax payroll deductions. According to the current IRS regulation, employees can deduct up to $250 per month for commuter parking.
Harrisburg Monthly Parking Example – South Street Garage
If an employee chooses to set aside $170 for parking every month under the program ($2,040 per year), the employee’s gross taxable income is reduced by $2,040. In this example the employee can save up to $816* year!
*these are estimated savings based on an incremental tax rate of 40%. Individual savings may vary based on employee’s filing status, tax rate, state of residence, deductions and other factors
To learn more about pre-tax parking, please click here.